Consumer protection watchdog warns about Tether's reserves

According to the S&P Global ratings agency, Tether scored a 4 out of 5 on its stability assessment, with 5 being the worst rating.

Consumers’ Research, a consumer protection group, published a Sept. 12 report warning about stablecoin issuer Tether. It called the company out for a lack of transparency surrounding its US dollar reserves.

The consumer protection group claimed that Tether has yet to produce a full audit of the dollar reserves purportedly backing the USDT (USDT) stablecoin from a reputable accounting firm, despite numerous promises by the stablecoin issuer to audit its reserves.

This lack of transparency is similar to the situation that precipitated the collapse of FTX and Alameda Research, the authors of the Consumers’ Research report argued.

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According to the S&P Global ratings agency, Tether scored a 4 out of 5 on its stability assessment, with 5 being the worst rating.
Consumers’ Research, a consumer protection group, published a Sept. 12 report warning about stablecoin issuer Tether. It called the company out for a lack of transparency surrounding its US dollar reserves.The consumer protection group claimed that Tether has yet to produce a full audit of the dollar reserves purportedly backing the USDT (USDT) stablecoin from a reputable accounting firm, despite numerous promises by the stablecoin issuer to audit its reserves.This lack of transparency is similar to the situation that precipitated the collapse of FTX and Alameda Research, the authors of the Consumers’ Research report argued.Read more