Tether Hits Back at WSJ After Damning Report

Stablecoin issuer Tether has taken aim at The Wall Street Journal in its recent blog post, claiming that the reputable media outlet published "false information" in its recent article.

In a report published on Sunday, the WSJ claims that even a 0.3% loss in Tether's assets could make the controversial stablecoin issuer "technically insolvent," meaning that its assets barely outweigh its liabilities.

Tether claims that the report is part of "an agenda" to hurt its image since it is not the only stablecoin issuer with tight margins.

Earlier this month, Tether released its first attestation report, which shows that it holds roughly 12% of its $66.4 billion worth of reserves in commercial paper. The company also committed to publishing such reports every month after hiring BDO Italia, an insurance and audit company.

The WSJ says that Tether's recent attestation was signed off by its own accounting firm. The company countered this claim by pointing to the fact that BDO International is the fifth largest audit firm in the world, adding that its Italian subsidiary has "unrestricted access" to any documentation during the process of attestation.

Tether also says that it is false to assume that its business is "unprofitable" in response to the report.

The company claims that it has easily redeemed billions of tokens over the past few months.

The market cap of Tether has dropped significantly as a result of the Terra mayhem in May.

The stablecoin issuer also denies that hedge funds opened short positions in USDT. In late June, the WSJ reported that sophisticated investors were interested in shorting it.