US consumer protection group warns of Tether reserve transparency issue

Odaily Odaily News: U.S. consumer protection organization Consumers' Research released a report on September 12, warning that stablecoin issuer Tether lacks transparency about its U.S. dollar reserves. The organization pointed out that despite Tether's repeated promises to audit its USDT reserves, it has not yet provided a complete audit conducted by a well-known accounting firm. The authors of the report believe that this lack of transparency is similar to that which led to the collapse of FTX and Alameda Research. It also issued an open letter to governors of various U.S. states, emphasizing the potential risks of Tether. At the same time, Tether actively responded to external doubts. In July this year, it hired former Chainalysis chief economist Philip Gradwell to provide a USDT usage report, and announced in August that it would assist law enforcement agencies in recovering $108.8 million in USDT related to illegal activities. In the first half of September, Tether also announced a partnership with Tron to establish a financial crime department. (Cointelegraph)