Tether’s Q4 2022 financials have stirred a debate from independent analysts. Intel_jakal, a Twitter user, has questioned the firm’s financials that were declared to have posted a $700 million net profit. The analyst is critical of the fact that the company's non-token debt increased by over 300% despite an impressive figure in the report.

Through an illustrative example, Intel_jakal showed how Tether could manipulate its books to show profits. He admitted to having received insight from Tether’s CTO on the possibility of bookingprofits without actually having made them. The independent analyst added that, while Tether could be up to something again, he remains open to the possibility that their financials are legitimate.

Intel_jakal argues that the debt reported by Tether is a loan to debtors and not a debt write-off by debtors. After further analyses, he claims that Tether may have attempted to move the cash out as redeemable tokens rather than directly. It is noteworthy that the stablecoin issuer allegedly got exposed the last time it engaged in a similar situation.

The questions raised by Intel_jakal about Tether’s Q4 2022 report indicate that substantial scrutiny is necessary before taking a stand about the credibility of the financials of controlled financial service providers. Failure in such a proactive disposition could be perilous for investors and the cryptographic community as a whole.



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