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- The company that supports the stablecoin said that the publication is trying to discredit the work of its team and that of the accounting firm BDO with false information.
- It assured the public that it is being honest with its users and will continue to share its financial certifications, although it admitted delays regarding audits.
- The Wall Street Journal article states that “Tether needs an audit akin to a corporate colonoscopy” on the status of its reserves.
Tether, the company behind the world’s largest stablecoin, has responded harshly to comments in an article published by The Wall Street Journal this week, in which the WSJ accuses the company of not doing real audits on its financial and accounting situation.
The Tether Holdings Ltd. team accused the WSJ of misinforming the public and discrediting its work in front of its users through a press release published on its blog. “BDO, a very reputable and independent Top 5 audit firm, and is not a ‘Tether accounting firm,’ as erroneously written by the WSJ.”
It further said that the Italian accounting firm "will continue to have unrestricted access to any relevant information to perform their work." It added that “Tether will continue to share its attestations, despite continuous attempts by the media to disparage its reputation and that of top-ranking firms like BDO that are working with digital asset companies.”
The discord article published on August 27 quotes former head of internet compliance at the Securities and Exchange Commission, John Reed Stark, who stated, “Tether needs an audit akin to a corporate colonoscopy that tells investors everything about what’s in their reserves.”
Authors of the article, Jean Eaglesham and Vicky Ge Huang, question the fact that “instead of a full audit, Tether, like other leading stablecoins, publishes a “certificate” showing a snapshot of its reserves and liabilities, signed by its auditing firm.”
Tether defended itself by saying that the Treasuries backing its balance sheet are not unsafe assets. It mentioned that it is false that its business “is unprofitable,” as the publication suggests and pointed out that “perhaps the WSJ has confused Tether with some of its competitors.”
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