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Renowned advocacy organization Consumers’ Research raised concerns about Tether, criticizing the USDT stablecoin issuer for exposing users to significant risks due to its business model. Despite these concerns, Tether has recently emerged as one of the most profitable crypto companies globally, reporting massive quarterly profits. Consumers’ Research Slams Tether for Audit Risks In a letter aimed at protecting consumers, addressed to Washington Governor Jay Inslee, Consumers’ Research criticized Tether for failing to conduct an audit to prove that its USDT stablecoin is backed 1:1 by the US dollar, despite promises dating back nearly 10 years. The report described this failure as a serious risk, calling Tether and USDT a “disaster for consumers waiting to happen.” “Tether’s continual failure to undergo an independent audit raises a distressing red flag for the company and its USDT product. Tether has promised that it would conduct a full audit since at least 2017 but has still failed to do so. In August 2022, its CEO stated that an audit was ‘likely months away.’ Years later, there is still no audit,” read a paragraph in the letter. In addition to the lack of audits, Consumers’ Research criticized Tether for its history of doing business with bad actors, including sanctioned crypto exchanges like Garantex and BitPapa. The report also referenced a recent Wall Street Journal (WSJ) article, which accused Tether of “enabling a parallel economy that operates beyond the reach of US law enforcement.” Read more: 9 Best Crypto Wallets to Store Tether (USDT) The Consumers’ Research also detailed Tether’s “history of false claims,” mentioning key red flags, including but not limited to: In 2018, the US Department of Justice investigated Tether and Bitfinex’s involvement in crypto market manipulation. In 2019, New York determined that Tether moved hundreds of millions of dollars to conceal the loss of…

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Filed under: News - @ September 13, 2024 5:26 pm