USDT issuer Tether receives warning!

S&P Global rating agency Consumers’ Research has issued a report warning about USDT issuer Tether.

The report, published on September 12, criticized the stablecoin company for its lack of transparency regarding its US dollar reserves. The consumer protection group claimed that Tether has failed to conduct a full audit despite numerous promises to audit its reserves.

The authors of the Consumers’ Research report likened Tether’s lack of transparency regarding its reserves to the situation that precipitated the collapse of #FTX and Alameda Research.

The research report, which stated that Tether has failed to conduct a full audit of its dollar reserves, also alleged that the company has been collaborating with bad actors.

The report, sent to every state governor in the US, cited Tether’s lack of transparency, collaborations, radio ads, and a dedicated website supporting the claims.

The consumer protection group accused Tether of failing to prevent illegal entities using USDT to evade international sanctions. The report gave Tether’s stability rating a score of 4 out of 5, with 5 being considered a poor score.

Howard Lutnick, CEO of Cantor Fitzgerald, which manages Tether’s US securities portfolio, gave assurances for the company behind #USDT in

January. “From what we’ve seen, and we’ve worked very hard, they have the money they say they have,” Lutnick said.

The stablecoin issuer hired former Chainalysis chief economist Philip Gradwell in July to increase transparency in USDT usage reports. The reports will be made available to US regulators and investors.

Tether #CEO Paolo Ardoino reported that his firm has seized 108.8 million USDT in accounts linked to illegal activity since 2014.