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Tether Co-Founder Pressed on Lack of Transparency

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Fri, 2/12/2022 - 15:40
Tether Co-Founder Pressed on Lack of Transparency
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In a recent interview with CNBC's Squawk Box, Andrew Ross Sorkin pressed Tether co-founder Reeve Collins on the lack of transparency surrounding the reserves of the leading stablecoin issuer.

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Sorkin, referring to a recent piece published by the Wall Street Journal, pointed to the fact that Tether does not publish its audited financial statements, which means that outsiders are left in the dark. "If you do have reserves, why don’t you show them," Sorkin asked.

Collins argues that Tether has always redeemed every token for "exactly one dollar." He adds that the company has the best risk mitigation tactics in the industry. "It has withstood the test of time," he said.

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Even though the investor claims that Tether publishes proof of its reserves, he says that it is fine for people to question the company's transparency.

Collins, who sold Tether back in 2015, says that the industry is going to become more transparent due to the recent string of failures.

Tether has been one of the most controversial cryptocurrency companies, with critics, widely known as "Tether truthers," arguing that the company is a massive sham.

Last October, the CFTC filed and settled charges against Tether after accusing the company of lying about the backing of the flagship USDT stablecoin.

The largest stablecoin issuer is also the target of a $1.4 trillion class-action lawsuit, which accuses the company of perpetuating large-scale fraud.

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