Tether has published last week a report, generally known critics to appease. The report, however, leaves open some questions.
Last month, 250 million USD Tether were generated, whereby the interest of the Public was aroused, the Tether is, however, already for a long time a hot topic in the Blockchain and Cryptocurrency Community.
The report by Freeh Sporkin & Sullivan confirmed the full Tether reserves, but also contains a Disclaimer in the Memorandum, which leaves the confirmation of one’s own Interpretation. The decision of the Tether to just use this organization for an Audit, also raises suspicion.
Not a real Audit
Freeh Sporkin & Sullivan is a law firm that was co-founded by former FBI Director Louis Freeh. For this reason, the Memorandum does not constitute an Audit, because it was not conducted by an accounting firm. Stuart Hoegner, a senior legal adviser of the Tether explained:
“An audit is to be reached in the crypto-scene is very difficult. The industry is still very young, what will be the big accounting firms discourage to accept customers, the digital coins are created.“
Conflict of INTEREST?
Eugene R. Sullivan, a Senior Partner at Freeh Sporkin & Sullivan, is also a member of the Board of Advisors of the Noble Bank, which is both Bitfinex, as well as for Tether. The co-founder of Tether, Brock Pierce, another co-founder of Noble Bank in the year 2014, is also a Partner of Sunlot Holdings. One of the consultants from Sunlot Holdings, Louis Freeh of Freeh Sporkin & Sullivan.
The U.S. Commodity Futures trading Commission (CFTC) in December 2017 Tether and Bitfinex, however, entered no further information in the foreground. You have also studied recently the possible Bitcoin price manipulation.
RESERVES CONFIRMED, NO LIABILITIES
The Memorandum confirmed that the Tether had the appropriate reserves on your Bank accounts, the test was on 01. June carried out. According to the report, the date of the Tether was selected’s Knowledge. It does not, however, the liabilities of the Tether. A Disclaimer in the Memorandum stating that “carried out the FSS procedure will not serve the purpose of safety”.
Tether’s September 2017 the Audit
The audit said that the money was saved on the account of the Trustee. There was no confirmation that the Tether had an enforceable agreement with the Trustee and the Bank in which the funds were held, was removed from the document. For this reason, the finished Tether, the partnership with this auditing firm (Friedman LLP).
Other Stable Coins
TrueUSD publishes an independent certificate, which will be conducted by the accounting firm Cohen & Company in the current accounts for TrueUSD and the held Collateral to certify. There are many other stable coins in the development, such as, for example, Circle, Augmint, or Aurora DAO.