The Wall Street Journal was criticized yesterday for an article that Tether Holdings Limited believes spread “false information” about the company’s profitability, solvency, and accounting standards. Tether Holdings Limited is the issuing company of the market-leading cryptocurrency stablecoin, Tether (USDT).
Remember that Tether might be deemed “technically bankrupt” if its assets dropped by just 0.3%, according to a Monday WSJ article. The publication examined the assets and liabilities listed by Tether as of Thursday in order to draw this conclusion.
Tether stated in a blog post published on Tuesday that “the story aims to denigrate the effort Tether has done to communicate freely and honestly with the public.” The stablecoin issuer said, “BDO, a very recognized and independent Top 5 audit company, is not a ‘Tether accounting firm’ as the WSJ incorrectly reports.
In particular, Tether disputed the WSJ’s assertions that its exposure to short-term US Treasury bonds is a dangerous tactic. Tether also addressed claims that its operations are not profitable:
“According to our Consolidated Reserves Report, Tether has never disclosed equity, despite being profitable for several years. This same report has been deemed appropriate by significant stakeholders and has been accepted by the NYAG Maybe the WSJ confused Tether with some of its competitors,” the company explained.
Remember that the Tether stablecoin USDT frequently draws criticism and questions about its reserves, or even about their makeup, since the firm only releases a portion of the data on the assets that are intended to ensure the stability of the Tether stablecoin.