Tether, one of the most dynamic stablecoins on the market, is once again at the heart of a controversy. The promoters are accused of lacking transparency regarding the financial situation of the asset.
Tether promoters accused of being counterfeiters!
A few days ago, John Reed Stark called for a ban on the stablecoin Tether USDT in the United States. The former head of the SEC this time returned to the charge with new grievances. These particularly concern stakeholders of crypto he accuses of being counterfeiters.
In particular, Stark criticizes Bitfinex, a partner of Tether Limited, the firm behind USDT, for lacking transparency. The former SEC executive notably accused Paolo Ardoino, the technical director of Bitfinex, of fraud.
The official is suspected of misleading both users and regulators about the true financial health of Tether. This, by manipulating the data of the attestation reports produced to give an illusion of transparency and financial stability.
Charges and Consequences: The Tether Controversy Continues
The allegations against Bitfinex suggest something more damning. That basically, the latter could well have been at the origin of the attestation reports produced on the financial situation of the USDT.
This, especially since these can be considered as unilateral declarations of the company. This calls into question the objectivity of the company. Moreover, John Reed Stark believes, the attestation reports do not establish the veracity of Tether’s reservations.
Moreover, they do not favor an independent and thorough audit of the firm’s finances. This therefore means that the parity of USDT to the dollar can be quite speculative. A prospect that goes in the direction of the eventual crash of the stablecoin that Stark predicted.
At this time, USDT stakeholders have not delivered their share of truth. And we imagine that they should react given the seriousness of the allegations. In the meantime, the former head of the SEC is convinced:
“Tether masquerades as US dollars, even going so far as to try to look like US dollars by labeling itself USDT. All this in plain sight. However, Tether is not the American dollar and does not have the slightest characteristic of it. In this sense, Tether is a counterfeiter! “.
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