New Tether report shows it’s fully backed by US dollar.
Tether has re retained the law firm of Freeh, Sporkin & Sullivan LLP (“FSS”) to provide legal advice and counsel regarding a review of bank account documentation. FSS is a Washington-based law firm, which provides legal, investigative and monitoring services to organizations around the globe.
They have earlier been accused of not having sufficient fiat reserves to back the USDT token at a 1:1 ratio. More information can be found in this article.
In a new transparency report published on June 20, the following can be read: “Pursuant to the above terms of Engagement, and the discretion provided by Tether, FSS selected the date of June 1st, 2018, and received the following balance information from Tether’s two banks as of the close of the banking day. FSS received the following confirmations from the respective banks by sworn and notarized statements provided by duly authorized personnel.
BANK 1: $1,968,538,584.82 USD (unencumbered)
BANK 2: $576,528,652.00 USD (unencumbered)
TOTAL: $2,545,067,236.82 USD
FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018.
Some experts fear that if Tether collapses, it could have a “devastating” effect on the broader cryptocurrency market. Nicholas Weaver told CNBC that “Over the past couple of months, a huge amount of tether has been created, it has shifted to the Bitfinex exchange and presumably buys bitcoin and other cryptos. This, I believe, has been keeping the price up”
Some argue that Bitcoin could see a decline in price up to 80 percent if it turns out the price has been artificially pumped up by Tether.
David Gerard, author of Attack of the 50 Foot Blockchain says: “Everyone in crypto is very worried about the tether situation, and if these really count as dollars”.
It’s good to see that Tether is keeping their promises by publishing transparent reports that have been reviewed by external law-firms. This should create confidence in the market among investors.