Tether is not a 100% dollar indexed crypto money. Over the past year, Tether has experienced numerous scandals that create a dubious atmosphere around the USDT markers. Now, the company has updated its website and stated that its reserves could include "assets outside of the Fiat currency."
Quiet Website Update
A web dated February 19, 2019 archive Tether, on the website ”Each Tether is always one-on-one with the traditional currency held in our reserves, ie 1 USD is always equal to 1 USD.“ he wrote the requirement.
Tether Website Old Description
However, the company made a silent change in this statement:
Zaman Each money is 100% supported by our reserves (fiat), which always include traditional currency and cash equivalents, and from time to time, Tether (third parties, collectively, iç reserves ve). Each bond is also fixed to $ 1 to $ 1, so $ 1 is always worth $ 1 Appraised by Tether,, Tether says today on the home page.
Tether Web Site New Description
Lar Other assets “ Although we do not know exactly what it might refer to, it allows us to anticipate that Tether will keep some of its USD reserves in its crypto currency.
Some speculations, Tether's clearly E They admitted they sent money to Bitfinex “ appeared in the form.
”USDT is no longer officially supported by the USD by 100%.“
The Mystery behind Tether's Reserves
This was not the first time that Tether was concerned because of the suspicious nature of the USDT reserves. In June 2018, the law firm Freeh Sporkin & Sullivan, LLP (FSS) claimed that all USDTs in circulation were fully supported by the USD. report published. The CFO and the Tether General Counsel agreed with a sworn statement.
Published Reports
However, the report contained many problems because there was no real security audit on the company's reserves. In addition, the new statement on Tether's website contradicts the findings of the FSS report.
The FSS was not the first company to try to verify Tether's reserves. Friedman LLP was hired by Tether to conduct a security audit at USD reserves. In September 2017, Friedman published a preliminary report, which was fully supported by all circulating USD fiat according to the company's findings.
Since the report does not come from a full audit, the information it contains contains a large number of problems and missing (such as FSS). Moreover, Friedman did not have the chance to conduct a full security check on Tether's reserves due to the relationship between the two companies that ended in January 2018.
Tether Scandals History
In November 2018, Tether announced that it had opened a bank account at Deltec Bank & Trust Limited, based in Bahamas. With the announcement, the new banks, which give stabilcoin, made a comprehensive review of their activities under a background check, confirming that the company has about $ 1.8 billion in the bank account.
At that time, CryptoPotato checked Tether's transparency page and found that the reserves in his bank account matched USDT in circulation. Tether's new statement, however, also contradicts Delta's findings.
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