A digital asset firm, Tether has responded to the recent article from the Wall Street Journal and called it a series of unsubstantiated conclusions. WSJ’s journalist claimed that the weak balance sheet of Tether could possibly become insolvent if reserved assets price fall by 0.3%.
Tether stated that the article wants to discredit its work.
In an article, WSJ journalists said that BDO is a “Tether accounting firm”, which is incorrect according to Tether. BDO is one of the top 5 audit firms, which keeps a watch over Tether.
The blog stated that “BDO will continue to have unrestricted access to any relevant information to perform their work and Tether will continue to share its attestations, despite continuous attempts by the media to disparage its reputation.”
On the allegation that 3 months’ worth of T-Bills is an unsafe asset, Tether ensured that US Treasuries have been the premier safe asset worldwide. Tether also denied the claim of its unprofitability by giving the reference to the Consolidated Reserves Report.
Tether mocked WSJ as it said, “Perhaps the WSJ has confused Tether with some of its competitors.”
Tether defended the point of low margin difference by saying this margin is also applied to other stablecoins on the market.
Tether admitted that the company hasn’t been audited yet, however, it is going through one. While calling itself “most honest and transparent in the market”, Tether cited a background of competitors, who make false claims to have audited.
Tether again cited its capability to easily redeem over USD 16B of the issued token in recent months on WSJ’s false short-seller narrative.