Tether Criticized for Lack of Transparency and Alleged Business Practices

• Consumer protection group Consumers' Research criticizes lack of transparency around Tether's US dollar reserves.
• Tether's lack of a full audit from a reputable accounting firm is a major concern.
• Consumers' Research draws comparisons to the collapse of FTX and Alameda Research.
• Tether unveils new stablecoin, Alloy (aUSDT), backed by overcollateralized gold reserves.
• Consumers' Research accuses Tether of conducting business with questionable entities and enabling evasion of international sanctions.
• Tether defends itself, hires economist to produce usage reports, and assists law enforcement in recovering illicit funds.

Summary :
Consumer protection group Consumers' Research has released a report criticizing stablecoin issuer Tether for its lack of transparency regarding its US dollar reserves. The report claims that Tether has not undergone a full audit from a reputable accounting firm, which raises concerns about the backing of its USDT stablecoin. Consumers' Research draws comparisons between Tether and the collapses of FTX and Alameda Research. The group also accuses Tether of conducting business with questionable entities and failing to prevent the use of USDT for evading international sanctions. Tether has not yet responded to the report. However, there have been some industry figures, such as Cantor Fitzgerald CEO Howard Lutnick, who have defended Tether. Lutnick stated that Tether has the money it claims to have and expressed his support for the stablecoin. Tether has taken steps to address transparency and combat illicit activities, including hiring a former Chainalysis economist to produce usage reports and partnering with law enforcement agencies to recover funds connected to illegal activities.

Sources :

- Decrypt
- CoinTelegraph