Tether (USDT) - Is pretending to be audited.

[MeGold666]

I'm sure you're all familiar with Tether "audits" by BDO Italia, but not many people may be aware that it's actually only an Attestation, not a full audit.

What's the difference ?

Attestation reports provide a snapshot, but lack the detail, independence, and rigor of financial audits conducted under Generally Accepted Auditing Standards (GAAS). Attestation process relies heavily on data reported by Tether’s own management, with only limited external confirmation.

As of March 2025, Tether CEO Paolo Ardoino confirmed the company is actively in discussions with a Big Four firm to perform its first full audit, a process described as a “top priority,” though no firm has been officially engaged nor are audit dates confirmed.

On their site (https://tether.to/en/transparency/?tab=reports) You can read:

As part of our continued commitment to transparency, we have published Reserves reports quarterly.4 In addition, Independent Auditors’ Reports on the Reserves reports are prepared by BDO Italia, an independent third-party accounting firm as of the end of our quarters.5 Our reports demonstrate that our Reserves are greater than the redemption value of Tether Tokens in circulation on the dates reported.

With a small print on the bottom of the page (because they had to):

The information presented is subject to the limitations, qualifications and assumptions expressed in the accompanying reports and subject to Tether’s Terms of Service, including Section 12 (No Representations & Warranties by Tether) and Section 13 (Site Content). This information is provided as part of Tether’s continuing commitment to transparency and should not be relied upon in a decision to utilise its services or to hold or transact in Tether Tokens.

So, in short: you use it at your own risk. We've never had an audit, but we really would like one, which is why we're trying as hard as we can not to get one.

Just look how nice it looks:



Auditors, Auditors, Auditors - and so many people think they were actually audited  

[tsaroz]

It's not a surprise that Tether don't have equivalent reserve for its stablecoin. Even the Tether team has indirectly accepted it that they count the money they loaned as the reserve for the token as well Bitcoin and Gold. Bitcoin and Gold are relatively safer but loaned amount could default anytime. Some reports tell even these three would add up to 100% of Tether and they are being minted out of thin air. Not being able comply with EU rules and taking time to have US compliance proves that.

Tether is a risk but the team has promised to keep improving how it operates and have an actual audit soon. There are not much better option for traders as alternative to USDT, there USDC but it doesn't even trade with 10% of what USDT does.

[MeGold666]

Tether is a risk but the team has promised to keep improving how it operates and have an actual audit soon.

Soon™ - I can guarantee you that they will never do this.

They will run this circus for as long as they can before the authorities raid them.

Some back story of one of the folks behind:

Giancarlo Devasini (Co‑founder & CFO) In 2021, Devasini paid an USD 18.5 million penalty to settle with the New York Attorney General over Bitfinex’s improper use of Tether reserves to cover losses following financial strain in 2018

He also had business dealings (as liquidator of Perpetual Action Group Asia) with Gennaro “Reno” Platone, convicted for large-scale VAT fraud tied to organized crime, though Devasini was not charged, his transactions and association were highlighted by investigative reporting.

I'm sure there's much more to him and everyone else involved in Tether, they just haven't been caught yet.

Tether is a criminal organization, if you can't see it - you're blind.

Some more interesting stories:
https://cryptonews.net/news/legal/24673712/

[mikel_012]

Tether has been called a criminal organization for many years. So far nothing has happened, USDT is still at $1 and they keep growing.

They can make so much money investing their backed USD on the Treasury, why wouldn't they have the money? Even if they lost money one day, the hole must have been filled because of the high rates and the billions of USDT that people use every month.

[franky1]

unlike other corporate audits that look into everything such as office equipment valuation, production machinery valuations, stock count, and then the financial books.
however just checking the reserves is a easier task and not really a "full audit"

all thats needed is a independent verifier that the bank accounts hold total funds of XXX
it does not need a "full audit" of office supplies, machinery and tools valuation.

but with that said, its always good to research into WHOM has access to funds to look into potential "we been hacked" retirement plans for CEO's(aka internal theft)

if people holding bags of money have less experience of holding money but more experience of criminal past.. then something is wrong and something to be wary of.

tether always had a shady past (brock pierce).. but thats where many countries are developing regulations in regards to stablecoins. it should hopefully straighten out a few things("hopefully")

[AmoreJaz]

It's not a surprise that Tether don't have equivalent reserve for its stablecoin. Even the Tether team has indirectly accepted it that they count the money they loaned as the reserve for the token as well Bitcoin and Gold. Bitcoin and Gold are relatively safer but loaned amount could default anytime. Some reports tell even these three would add up to 100% of Tether and they are being minted out of thin air. Not being able comply with EU rules and taking time to have US compliance proves that.

Tether is a risk but the team has promised to keep improving how it operates and have an actual audit soon. There are not much better option for traders as alternative to USDT, there USDC but it doesn't even trade with 10% of what USDT does.

What I always remember about tether was way back in 2019 that the Tether Management was in trouble because of the rumors that they really didn't have the 100% backing of USD assets.  So I don't know that right now, if they already fixed it. I believe that they are still lacking somewhere so just be careful with your USDT. Be conservative and think of contingencies in case something goes wrong with this stablecoin. Every stablecoin has their own owners and do remember, they can freeze that amount anytime they need it is necessary. This is why, it is still better to hold btc for long-term purposes.

Tether, the USD-pegged coin that’s no longer backed by USD

[roemer]

they are at least trying to keep things up to date. The issue everyone has is there are no replacements for these bigger guys.

[franky1]

they are at least trying to keep things up to date. The issue everyone has is there are no replacements for these bigger guys.

bigger guys.. um.. the top guys of tether are not big guys.. so just wait until stablecoin regulations are in effect and wait for the real big guys(JPM/blackrock) jump in and become fund managers of some new $coin, and then the main public exchanges using their $coin as the exchange reserve swap tunnel

[Coyster]

they are at least trying to keep things up to date.

Trying? They definitely need to do better than trying, we are talking about people's funds here and without that audit, how can customers know if the Tether in their wallet is backed by USD or backed by thin air. The community has been sceptical about Tether for a long time now and that is why it is advisable not to hodl it for too long, this is without adding that they can freeze your usdt, even if you have it in your non-custodial wallet.

[Webetcoins]

I have never trusted them and the way they did audits, it was always a sham for me and never trusted them.

Why would I trust a company who goes "hey give us your billions, trust us that we will keep it safe", in theory they may not, but even more than that, they are not keeping that in their vaults or something, they are a company, and companies can be sued, and they have been, imagine for a single second a government freezes their accounts, they are done.

So there is no reason to trust Tether and I will never do. Not that I will stop using it, I still use them to move money around, TRX and tether is great combination to move money around, but I never keep it at tether, only use it for moving money around and nothing else.

[coupable]

Tether is a risk but the team has promised to keep improving how it operates and have an actual audit soon. There are not much better option for traders as alternative to USDT, there USDC but it doesn't even trade with 10% of what USDT does.

No differences between them all. They are all minted by their teams and even claimed to be audited but rather no proofs that all the issued tokens after the audit would have USD cover reserve.

[JeffBrad12]

This allegation has been going on for so long.
I really hopeful that USDT will do a proper audit after the US enforce the GENIUS act to make these stablecoins issuer much more transparent according to the law.

This is also why I prefer using USDC these days.

[Die_empty]

The community has been sceptical about Tether for a long time now and that is why it is advisable not to hodl it for too long, this is without adding that they can freeze your usdt, even if you have it in your non-custodial wallet.

Never hodl Tether. Just use it for quick transactions and convert it immediately to more reliable currencies. This is because nobody knows when the can of worms will be exposed.

This allegation has been going on for so long.
I really hopeful that USDT will do a proper audit after the US enforce the GENIUS act to make these stablecoins issuer much more transparent according to the law.

This is also why I prefer using USDC these days.

A company that has not been fully audited cannot be trusted. These allegations have not been verified because an independent audit has not been carried out. People who keep a large chunk of USDT are taking a blind risk. Until the government verifies that the 1:1 dollar ratio is true, people need to deal with Tether caution.

[Danica22]

The community has been sceptical about Tether for a long time now and that is why it is advisable not to hodl it for too long, this is without adding that they can freeze your usdt, even if you have it in your non-custodial wallet.

Never hodl Tether. Just use it for quick transactions and convert it immediately to more reliable currencies. This is because nobody knows when the can of worms will be exposed.

This allegation has been going on for so long.
I really hopeful that USDT will do a proper audit after the US enforce the GENIUS act to make these stablecoins issuer much more transparent according to the law.

This is also why I prefer using USDC these days.

A company that has not been fully audited cannot be trusted. These allegations have not been verified because an independent audit has not been carried out. People who keep a large chunk of USDT are taking a blind risk. Until the government verifies that the 1:1 dollar ratio is true, people need to deal with Tether caution.

I'm not defending them but what's interesting is that the allegations of Tether's lack of transparency are not new. This has been going on for years and if I remember correctly it has been over 11 years since 2014. Not to mention, USDT is the coin with the largest market capitalization (stable coin) and is supported and used by all of the largest and most reputable exchanges in the industry. Do you think a fraudulent, dishonest company can last this long and be so widely used?

Come on, let's be real, they are still one of the most trusted giants when it comes to the stablecoin market with the largest capitalization and the most widely used.

[Die_empty]

I'm not defending them but what's interesting is that the allegations of Tether's lack of transparency are not new. This has been going on for years and if I remember correctly it has been over 11 years since 2014. Not to mention, USDT is the coin with the largest market capitalization (stable coin) and is supported and used by all of the largest and most reputable exchanges in the industry. Do you think a fraudulent, dishonest company can last this long and be so widely used?

Come on, let's be real, they are still one of the most trusted giants when it comes to the stablecoin market with the largest capitalization and the most widely used.

Before FTX collapsed in November 2022, it was the third-largest exchange in terms of volume and had over one million users. The market size and age of a company don't guarantee that it is reasonable. People trusting some altcoins doesn't make them reliable, it could be because of ignorance. The discussion is about conducting a comprehensive audit of Tether. Until it is done, USDT remains a risky currency to keep.

[WillyAp]

Before FTX collapsed in November 2022, it was the third-largest exchange in terms of volume and had over one million users. The market size and age of a company don't guarantee that it is reasonable. People trusting some altcoins doesn't make them reliable, it could be because of ignorance. The discussion is about conducting a comprehensive audit of Tether. Until it is done, USDT remains a risky currency to keep.

If not age what else is there? Name a few indicators. 
Surely some remember Wirecard, audited and still went belly up.

[Catenaccio]

More information about Tether development, its history and some warnings and reports on risk of Tether USDT stable coin in particular and stablecoins in general.

Tether minted more USDT.
Stable coins: a deep dive into valuation and depegging.
Tether (USDT) - Backed by Air and Words

With more and stricter regulations on stablecoins in the USA and the world, companies that launch stablecoins must be more transparent and have better treasury management but it does not eliminate all risks of stablecoins.

[DanWalker]

The GENIUS Act has been passed and will soon take effect. We will soon know whether Tether and other stablecoins are truly transparent and trustworthy. In just a short time, everything will be clear, we should not waste time speculating and accusing them without concrete evidence.

By the way, for those who are Trump fans but still skeptical about USDT. During the GENIUS Act signing ceremony, Tether CEO Paolo Ardoino was also invited to attend and was directly mentioned and thanked by Trump. This alone shows that things are not as simple as we think and the importance of Tether to the US in the coming time.


https://x.com/nic__carter/status/1946287396875653500
https://x.com/paoloardoino/status/1946307158515069334

[X-ray]

The GENIUS Act has been passed and will soon take effect. We will soon know whether Tether and other stablecoins are truly transparent and trustworthy. In just a short time, everything will be clear, we should not waste time speculating and accusing them without concrete evidence.

Even Tether CEO is making a statement himself about abiding by the GENIUS act. Only need few more times until all those stablecoins issuer are properly audited and become transparent. By then people can easily distinguish trusted stablecoin and untrustworthy stablecoin just by looking at the audited reserves.
Shouldn't be much of a deal if the solution is already coming up and imminent. There will finally be closure to these floating rumors and allegations.

[viljy]

Throughout the existence of USDT, there have been constant accusations that the stablecoin does not have full collateral. Well, what about it? USDT has been, and still is, and will be, despite all the FUD that has been spreading regularly. In fact, the question of fully reserving USDT is even ridiculous if you think about what the dollar is backed by?