ChainCatcher News: Consumers' Research Flags Concerns About Tether's Transparency

On September 12th, the consumer advocacy group Consumers' Research published a report raising concerns about stablecoin issuer Tether's lack of transparency regarding its dollar reserves. The report highlights that Tether has yet to provide a full audit conducted by a reputable accounting firm despite repeated promises to do so. Consumers' Research draws parallels between this lack of transparency and the situation preceding the collapse of FTX, and has sent an open letter to state governors across the US, emphasizing the potential risks posed by Tether.

In response to these concerns, Tether has actively sought to address external scrutiny. In July, they hired former Chainalysis Chief Economist Philip Gradwell to provide a report on USDT usage. Additionally, in August, Tether announced their assistance to law enforcement in recovering $108.8 million in USDT linked to illicit activities.