• dhork@lemmy.world
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    8 days ago

    Good. Tether has always been a scammy scam. There are currently 120 billion dollars worth of tether outstanding, which they claim is fully backed by dollars somewhere, but they haven’t been audited by anyone reputable. You would think that if they really had a bank account worth $120 billion, it could be proven rather easily.

    • sun_is_ra@sh.itjust.works
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      7 days ago

      From what I ubderstood, it doesnt has to be in cash or it would have been so simple as you said. The money can be in form of bonds, properties, stock shares, …

      same thing for banks, they dont have all customers’ money in cash.

      that said I agree that people behind tether are shady and lack of serious auditing is very concerning

      • dhork@lemmy.world
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        7 days ago

        They’re not a bank, though. Banks are regulated in terms of what assets they keep, and where. We only have Tether’s word.

        https://tether.to/en/transparency/?tab=reports

        They claim that 84% of their reserves are held as cash or cash equivalent, with 81% of that in US Treasury notes. Then why do they use some obscure Italian accountant to attest to that? They ought to be able to get a big name firm to attest to having $100 billion in US treasuries.

        They also claim to hold 5% of their reserves in Bitcoin, which is 5% too much.