BREAKING: Relationship between Tether and accounting firm Friedman LLP has been officially terminated

in #cryptocurrency • 7 years ago

Tether, the controversial stable coin tied to the US dollar has officially confirmed that the company's relationship with their auditor, Friedman LLP, has been officially terminated. Tether had claimed last year that Friedman LLP successfully completed an audit of the company to ensure that Tether has the money to back the USDT tokens the company has issued.

This audit claim has drew a series of criticism with many claiming that no official audit occurred.

Recently, Friedman LLP removed Bitfinex from their website which sparked a series of rumours of a break in relationships.

Screenshot from 2018-01-27 15-16-33.png

Today, Coindesk is reporting that Tether has officially confirmed that the company's relationship with Friedman LLP has been terminated. It is yet to be known the reason behind the termination and who broke the relationship.

Screenshot from 2018-01-27 15-16-49.png

#bitcoin #ethereum #crypto
7 years ago in #cryptocurrency by
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     7 years ago 

    Well, this is not a good sign. It is usually a precursor to an announcement that there are some shenanigans going on behind the scenes.

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     7 years ago 

    There's a correction needed here:

    Tether had claimed last year that Friedman LLP successfully completed an audit of the company to ensure that Tether has the money to back the USDT tokens the company has issued.

    This audit claim has drew a series of criticism with many claiming that no official audit occurred.

    The Friedman memo was explicitly not an audit, and Tether did not claim it was an audit when it was released. See their accouncement regarding the memo, which says:

    These consulting services do not constitute anaudit [sic] or attestation engagement, which would include a significantly expanded scope of procedures and take substantially more time to complete.

    We hope that the community considers the attached memorandum for what it is: a good faith effort on our behalf to provide an interim analysis of our cash position and our issued and outstanding tokens, as part of ongoing efforts to further professionalize the transparency mechanisms of Tether Limited.

    That is not to say that Tether have done nothing wrong or suspicious. See this article that I wrote for a bigger picture on the situation.

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     7 years ago 

    Good catch, I'll update when I have time.

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     7 years ago 

    This is all good, but will it help the cause? Because since Tether is not backed by USD, and they use it at Bitfinex to blow up the price of Bitcoin and Ether, the ticking time bomb stays. I would also recommend not to leave your money in Tether. It is best to change back to fiat or go into more or less other stable cryptos.

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       7 years ago 

      Next everyone's money will "dissolve".

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       7 years ago 

      Oh god, I'm scared of the ensuing bear market. Let's hope this doesn't happen.

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       7 years ago 

      Yes, if Tether and their sister company Bitfinex will go down, this would really hurt the whole crypto market. I guess we could easily see a drop in 60 to 70 percent like at Mt Gox times.

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