Sunday, December 4, 2022
 

Stablecoin Tether Responds To False Allegations Reported by WSJ

  • Tether responded to disinformation that is making the rounds.
  • The stablecoin called into question the integrity of the WSJ over such false allegations.
  • Tether claimed to be committed to maintaining its role as the leading stablecoin in the market.

Stablecoin Tether released a statement on August 30 to inform its community that it has responded to disinformation circulated to defame the integrity of the company. The disinformation mentioned in this case refers to an article reported by the Wall Street Journal (WSJ) against Tether.

The first point that Tether addressed was the assumption that 3 months’ worth of TreasuryBill is an unsafe asset. Tether refuted this claim by referring to the fact that US Treasuries have been the safest asset globally for the past several decades.

Tether also zeroed in on the fact that the article assumed that Tether was an unprofitable business, as they claimed that Tether’s assets outweigh its liabilities by just $191 million, implying a relatively “thin cushion of equity.”

As revealed by Tether’s Consolidated Reserves Report, the stablecoin has never disclosed any equity, despite being profitable for several years. The company also added that the report has been accepted by the New York Attorney General (NYAG).

The company behind the largest stablecoin by market cap then called the integrity of the WSJ into question when it pointed out that the publication was singling out Tether when the same margins apply to other stablecoins.

The misunderstanding with regard to the BDO audit firm was also addressed by Tether. Apparently, the WSJ reported that the BDO audit firm is a “Tether accounting firm”. The firm responded to this by stating that it is just another attempt by the media to damage the reputation of firms like BDO that work with digital asset companies.

Lastly, Tether concluded their response on their website by stating that the company is and will always be committed to maintaining its role as the leading stablecoin in the market, and will continue to live up to the standards of transparency, despite the opinions of “naysayers”.

  • Tether responded to disinformation that is making the rounds.
  • The stablecoin called into question the integrity of the WSJ over such false allegations.
  • Tether claimed to be committed to maintaining its role as the leading stablecoin in the market.

Stablecoin Tether released a statement on August 30 to inform its community that it has responded to disinformation circulated to defame the integrity of the company. The disinformation mentioned in this case refers to an article reported by the Wall Street Journal (WSJ) against Tether.

The first point that Tether addressed was the assumption that 3 months’ worth of TreasuryBill is an unsafe asset. Tether refuted this claim by referring to the fact that US Treasuries have been the safest asset globally for the past several decades.

Tether also zeroed in on the fact that the article assumed that Tether was an unprofitable business, as they claimed that Tether’s assets outweigh its liabilities by just $191 million, implying a relatively “thin cushion of equity.”

As revealed by Tether’s Consolidated Reserves Report, the stablecoin has never disclosed any equity, despite being profitable for several years. The company also added that the report has been accepted by the New York Attorney General (NYAG).

The company behind the largest stablecoin by market cap then called the integrity of the WSJ into question when it pointed out that the publication was singling out Tether when the same margins apply to other stablecoins.

The misunderstanding with regard to the BDO audit firm was also addressed by Tether. Apparently, the WSJ reported that the BDO audit firm is a “Tether accounting firm”. The firm responded to this by stating that it is just another attempt by the media to damage the reputation of firms like BDO that work with digital asset companies.

Lastly, Tether concluded their response on their website by stating that the company is and will always be committed to maintaining its role as the leading stablecoin in the market, and will continue to live up to the standards of transparency, despite the opinions of “naysayers”.

 

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