On September 12, Consumers’ Research published a warning report on Tether, the issuer of the stablecoin USDT, criticizing the lack of transparency regarding the USD reserves backing USDT.
The report points out that Tether has not yet received a full audit from a reputable accounting firm, despite repeated promises. The group compares Tether’s lack of transparency to the issues that led to the collapse of FTX and Alameda Research.
Consumers’ Research’s report comes alongside an open letter to US state governors, highlighting Tether’s lack of transparency.
The group also released radio ads and set up a website to explain the allegations. The report concluded by accusing Tether of “doing business with bad actors” and failing to prevent the use of USDT to circumvent international sanctions.
The Other Side of the Story
In January, Cantor Fitzgerald CEO Howard Lutnick reassured the public about Tether's cash reserves, asserting that the company had enough money as it claimed. To improve transparency, Tether hired Philip Gradwell in July to prepare a report on USDT usage.
In August, Tether CEO Paolo Ardoino said the company had helped law enforcement recover $108.8 million from illegal activities since 2014. In September, Tether partnered with Tron to launch the “T3 Financial Crimes Unit” to help identify and freeze illicit USDT transactions on the Tron network.