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New charges — new problems: Will Tether survive them?

Author: Content Editor
Consumer advocacy group Consumers' Research has released a report accusing Tether, the issuer of the USDT stablecoin, of being opaque and not conducting a full audit of its dollar reserves. The report claims that Tether has repeatedly promised to conduct an audit since 2017 but has failed to do so. Consumers' Research also accuses Tether of doing business with unscrupulous partners and enabling the circumvention of international sanctions and illegal activities. The Wall Street Journal (WSJ) has also raised concerns about USDT, stating that it threatens the financial system and national security of the United States. WSJ claims that USDT is widely used in countries like Venezuela and Russia to evade sanctions. Tether's profit for the same period amounted to $6.2 billion, higher than the world's largest ETF provider, BlackRock. Tether has faced previous controversies, including a lawsuit alleging misappropriation of funds and market manipulation. Tether settled the case, paying a fine of $18.5 million and agreeing to provide regular reports on its reserves. The claims against Tether highlight the need for an independent audit.

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