Five years ago, Tether Holdings, issuer of the eponymous not-so-stablecoin, made what seemed a fairly mundane and obvious promise: It would have its books checked by a bonafide auditor.
Like some of its other promises, notably that it would be unshakably pegged to the U.S. dollar—hence the misnomer stablecoin—Tether hasn’t quite been able to live up to its audit pledge. This is not for lack of accountants: Last year, it hired MHA MacIntyre Hudson’s Cayman Islands subsidiary to start offering quarterly attestations. These are not exactly audits, per se, but then again British regulators are looking into whether MHA can properly be called an auditor, precisely.
And, of course, Tether’s been pretty busy with some regulatory matters of its own: It’s been in federal crosshairs for only slightly less time that it’s been promising that audit, due to questions about how, exactly, it (usually) maintains that dollar peg, leading to last year’s $41 million CFTC fine—on top of the $18.5 million deal with New York State. Then, of course, it had to deal with the whole not-being-as-stable-as-promised, when $1 became $0.95 for a bit there. Now, however, maybe it’s time for that audit. Maybe.
BDO Italia took over Tether’s quarterly attestations in July.
Yes: Italia as in Italy. As is common for Hong Kong-based companies (allegedly) dealing in American dollars.
Tether said it is working toward releasing monthly attestation reports, but didn’t provide a timeline…. Tether declined to specify whether it will use BDO Italia for its long-promised full audit, which the company said is a priority.
Five years and counting for something most companies manage to do annually? Sure sounds like a priority.
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