• John Reed Stark, former US Securities and Exchange Commission (SEC) official, has warned about Tether’s potential collapse.
• He points out the lack of transparency and audits in the company’s operations.
• Despite these concerns, Tether has recently issued its Q1 2023 Assurance Report, attested by BDO Italia.
John Reed Stark’s Warning
Former US Securities and Exchange Commission (SEC) official John Reed Stark has issued a warning about Tether, the world’s largest stablecoin emitter, USDT. In his opinion, Tether could be the next domino to fall, and its promise of transparency and audits may not be enough to prevent that from happening. Is Tether’s Future In Jeopardy?
Lack of Transparency & Opaque Banking Partnerships
Stark, who has 35 years of experience studying markets and financial statements, including 18 years as an attorney in the SEC Enforcement Division, believes that Tether is a “mammoth house of cards” that could collapse at any moment. He argues that the company’s lack of transparency and its opaque relationship with its banking partners create significant risks for investors and the wider financial system.
Unaudited Financial Reserves
In addition, John Reed Stark has called attention to the lack of regulatory constraints on the company and its unaudited financial reserves, calling it a “red flag” for fraud investigators. Despite promises of transparency and audits, Tether only offers “attestations,” which are not the same as audits and only evaluate the accuracy of data at a specific moment in time.
Q1 2023 Assurance Report
However, contrary to the concerns raised by former SEC chief John Reed Stark, Tether has recently issued its Q1 2023 Assurance Report, which was attested by BDO Italia – one of the top five-ranked global independent public accounting firms. The report reaffirms the accuracy of the firm’s Consolidated Reserves Report (CRR), which provides a detailed breakdown of Tether’s assets as of March 31st 2023.
Furthermore, in a significant move towards transparency