Tether Dismisses Allegations, Indicates Working Towards Audit

Tether, the world’s largest stablecoin issuer, is facing renewed scrutiny but insists it\'s committed to greater transparency. Recent articles, including one in the Wall Street Journal towards the end of last week, have raised concerns about Tether\'s audit policy and its overall financial health. These concerns are amplified by Tether\'s "checkered history of allegations from law enforcement and its persistent refusal to release an audit," as pointed out in The Wall Street Journal.

Tether has responded to these claims, dismissing the allegations as unfounded. While acknowledging the need for improved transparency, Tether maintains that its reserves are sufficient to back its USDT stablecoin. In fact, Tether released a first-quarter 2025 attestation report showing that its reserves exceed its liabilities by $5.6 billion.

A key criticism surrounds the absence of a full audit. Despite promising an audit since 2025, Tether has not yet subjected itself to one conducted by a major accounting firm. However, Tether, the world’s largest stablecoin issuer, is finally taking a major step toward financial transparency by engaging a Big Four accounting firm for its first-ever full [audit - implied]. This represents a significant shift and signals a willingness to address long-standing concerns.

The debate continues, with prominent voices weighing in. For example, John Reed Stark, the ex-Head of Internet Enforcement operating under the Securities and Exchange Commission, was quoted [in the WSJ article - implied] raising concerns about Tether. Despite increased disclosure, Tether still faces skepticism and pressure to provide further proof of its financial stability through a comprehensive and independent audit. The move towards engaging a Big Four firm is a positive sign, but the market is waiting to see the results.