The Stablecoin Tether stand in the criticism, is not sufficient with the US-Dollar covered. To rebut this allegation, the company contracted with the law firm of Freeh Sporkin & Sullivan, (FSS) in order to create an opinion. The significance of the opinion is now, however, out of the question.
In the on 20. June published a report called, granted to Tether the auditors, among other things, insight into their two business accounts. The firm selected, allegedly without consultation with the Tether, the first of June as the key date. The result: Combined 2.545.067.236,82 US dollars on both accounts. This sum is roughly equivalent to the dollar value of the at this time circulating Tether. In other words: The Coin is covered as promised by the US Dollar.
The Whole, however, has a bad aftertaste: As the limiting comments, at the end of the report would be. These give the impression as if trying to keep the FSS is legally some back door open. It is said there:
“FSS is not an accounting firm and the above test was not subject to the generally accepted accounting principles in the United States of America [GAAP]”
“The above confirmation of account balances should not be as a result of an audit are understood and was not conducted in Accordance with generally accepted auditing standards of the United States of America [GAAS].”
These test standards include, among other things, that an auditor must have, in addition to adequate training is also an independent mentality in regard to everything that is relevant to the Audit.
The connection between the Tether-Bank and FSS
If this independence is given in the case of FSS, may at least be doubted. The former judge Eugene R. Sullivan is not only one of the namesake of the firm, is also a Board member in one of the two Tether-banks. Due to this fact, Tether has become the first place to the FSS attention. The names of the banks where the accounts are, not wanted to betray the FSS, however.
So why Tether has no regular Audit to perform? The lawyer of the company, Stuart Hoegner, justified the decision of the company to Bloomberg: “In the end we can not get Audit.” The crypto market is for the large audit firms still to young to pull customers from this area into consideration. “The big four audit firms have a strong aversion to such a risk,” says Hoegner, “we have been trying to find the next best solution.”
This does not necessarily mean that the opinion of the FSS is useless. In any case, you should be, however, about the Connections of the Tether, the FSS and the banks in the Clear.