Consumer Advocacy Agency Raises Concerns Over Tethers Reserves

A report published by consumer protection group Consumers’ Research on September 12 has raised concerns about stablecoin issuer Tether’s lack of transparency regarding its US dollar reserves. The group criticized Tether for failing to provide a full audit of its reserves from a reputable accounting firm, despite previous promises to do so. Consumers’ Research drew similarities between Tether’s lack of transparency and the situations that led to the collapse of FTX and Alameda Research. To highlight its concerns, the group sent an open letter to all state governors in the US, released radio advertisements, and created a dedicated website outlining its claims. The report also accused Tether of conducting business with illicit entities and enabling the evasion of international sanctions through the use of USDT. Tether, on the other hand, has taken steps to improve transparency, such as hiring former Chainalysis chief economist Philip Gradwell to produce reports on USDT usage. The company also collaborated with Tron to launch a financial crime unit to combat illicit transactions involving USDT on the Tron network.