Tether Emphasizes Commitment to Transparency, Releases Reserves Information in Response to CoinDesk's FOIL Request
Rebeca Moen Jun 15, 2023 16:48
Tether has reaffirmed its commitment to transparency and announced its completion of reporting obligations to the New York Attorney General's Office. Under the terms of its 2021 settlement, Tether fulfilled its quarterly reporting requirements for a period of two years.
Tether has reaffirmed its commitment to transparency and announced its completion of reporting obligations to the New York Attorney General's Office. Under the terms of its 2021 settlement, Tether fulfilled its quarterly reporting requirements for a period of two years. There have been no indications of incomplete disclosures or inadequate reserves during this time, cementing Tether's position as a reliable stablecoin. Furthermore, Tether proudly boasts its largest market cap in history, highlighting its strengthened position within the market.
Following the settlement last year, CoinDesk sought public disclosure of Tether's quarterly reports through New York's Freedom of Information Law. Today, the New York Attorney General's Office provided responsive documents to CoinDesk as Tether decided to withdraw its opposition to the request. Tether initially contested the release of confidential customer data and sensitive commercial information, citing concerns over potential exploitation by malicious actors. However, Tether's unwavering dedication to transparency led to the prioritization of openness over prolonged legal battles that could divert attention from critical community matters.
Among the disclosed documents are statements from Tether's banks, confirming the existence of the company's reserves. These statements align with the publicly disclosed, independent third-party assurance attestations, further substantiating Tether's commitment to transparency. The provided materials also shed light on Tether's implementation of best-in-class asset management strategies, including short-term investments and diversification, as evidenced by the various bank statements. Tether aims to dispel the unfounded fear, uncertainty, and doubt (FUD) surrounding the backing of its stablecoin through these documents. Additionally, it is important to note that the materials are outdated and do not accurately reflect the present state of Tether's reserves, considering the transformative changes within its ecosystem. Tether has significantly reduced its commercial paper holdings to zero in mid-2022 and intends to bring its secured loans portfolio down to zero in the near future.
The timing of today's attack on USD₮, affecting both decentralized finance (DeFi) and centralized exchanges, coincides with the handover of materials to CoinDesk, raising questions about potential motives. Nonetheless, Tether emphasizes its transparency and expresses utmost confidence in the accuracy of its financial figures. While the sensitivity surrounding the release of confidential data to government agencies has diminished since 2021, Tether remains vigilant regarding customer data. Despite potential biases in CoinDesk's coverage, Tether calls upon them to refrain from publicly disclosing any past or present customer names to avoid exposing individuals within the community to physical or digital risks.
While CoinDesk is still likely reviewing the provided information, Tether closely monitors the USD₮ markets for signs of manipulation that could induce panic if and when CoinDesk decides to publish its findings. Despite the associated risks, Tether firmly stands in favor of transparency. The published information, if interpreted correctly, serves as public proof of Tether's legitimate business operations and the existence of its reserves.
Tether proudly asserts its position as the leading stablecoin, making positive contributions to the community. The company takes pride in the deep liquidity of its reserves, as demonstrated through its strength and stability during numerous industry-wide challenges. Tether remains steadfast in its commitment to safeguarding customers, personnel, and the wider community against any malicious attacks.
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