BITCOIN STATUS - DATA STATUS - 20180716
BITCOIN STATUS - DATA STATUS - 20180716
Bitcoin is UP today: 4.02%
| BITCOIN | Mon, Jul 16 / 10:50:50 |
|---|---|
| Current Price | 6615.04 |
| Bid | 6615.04 |
| Ask | 6620.04 |
| High | 6677.785505 |
| Low | 6330 |
| 24Hr % Change | 4.02 |
Bitcoin Status
Bitcoin is UP today.
- This update provided by @CryptoClerk
The FSS report linked in that post (like the Friedman report from late 2017) is highly unusual, and it raises far more questions than it provides answers. It does not support the claims Tether makes in this post, and it is not actually useful for supporting any claims about Tether's reserves.
Some of the many problems with this:
It is a standard audit procedure for an auditor to reach out to a bank and have them confirm the balances they hold for their customer/the auditee. However, as this was not an audit performed under generally accepted auditing standards, so we don't know that the bank confirmation was conducted correctly. Did they communicate with the banks free of Tether's influence? Are these legitimate, well known banks? Is Tether the sole owner on these accounts?
Why are lawyers doing this? This sort of thing is almost always handled by accountants. (My suspicion is that no reputable accounting firm will touch them with a ten-foot pole after seeing how their relationship with Friedman LLP ended. That whole episode raised major red flags for any experienced auditor who was paying attention.)
If we ignore those concerns, then this is still not useful for proving that Tether carries adequate reserves. What is the source of this cash? Did it actually come through Tether purchases? For all we know, Tether could've taken out a one-day loan, transferred the cash to these accounts for one day, then paid it all back on June 2nd. That kind of stuff is what an audit would find, because an audit looks at a) sources and uses of funds and b) rights and obligations over funds, not just existence of funds.
Speaking of audits and their consideration of rights and obligations, one thing an audit would have to address is the legal obligation (or lack thereof) of Tether to redeem USDTs. Given that there's a strong argument to be made that Tether is under no legal obligation to redeem USDTs for USD, there's a good chance than audited financial statements would have to show their cash collections as revenue rather than customer deposits - and that truth being laid bare to the world would torpedo every claim Tether has made about USDTs. (And, though I am not a lawyer, I suspect that would open them up to legal problems for misrepresenting USDT to consumers and investors.)
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