Tether Prepares for Its First Full Financial Audit

YEREVAN (CoinChapter.com) — Tether is preparing for its first full financial audit. The company is reportedly reaching out to a Big Four accounting firm to begin the process.

Tether, the issuer of the largest stablecoin Tether (USDT), is preparing for its first full financial audit. The move comes amid growing concerns over Tether’s reserves and transparency.

Tether CEO Paolo Ardoino told Reuters on Tuesday that the audit is a "top priority" for the company in 2024. Tether already issues independent quarterly reports, but a full audit would involve a more detailed review of the company’s finances.

Ardoino did not disclose which of the Big Four firms - PwC, Deloitte, KPMG, or EY - the company is working with to begin the audit process.

He also connected the speed of the audit to the U.S. president's focus on crypto.

“If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen,” Ardoino said.

Tether’s USDT is designed to maintain a 1:1 peg with the U.S. dollar. The company claims the USDT reserves include cash, cash equivalents, and other assets. Without a full audit, these claims are only partially verified by third parties.

Earlier in March, Tether hired Simon McWilliams as chief financial officer. The move was part of the plan to prepare for the upcoming financial audit.

Tether reported a $13.7 billion profit in 2024, according to Ardoino. Despite the strong numbers, industry voices continue to express concern over the lack of a full USDT audit.

In 2021, the CFTC fined Tether $41 million for making false statements. At the time, Tether claimed USDT was fully backed by reserves. The CFTC determined that this was not always the case.

Earlier in September, Cyber Capital founder Justin Bons also raised concerns over Tether’s lack of transparency.

“[Tether is] one of the biggest existential threats to crypto. As we have to trust they hold $118B in collateral without proof,” Bons said.

Tether is currently under pressure in both the United States and the European Union. In 2024, Consumers’ Research, a U.S. consumer protection group, published a report criticizing Tether for its lack of transparency.

Meanwhile, new MiCA regulations in Europe have pushed exchanges to delist certain tokens. Crypto.com removed USDT and nine other tokens to meet these regulatory changes.

“It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves,” a Tether spokesperson commented.

Tether did not confirm which additional tokens were affected under MiCA rules.

Although Tether has announced its intention to complete a full financial audit, details regarding the timeline and partner firm are still unknown.

Tether did not immediately respond to further requests for comment.

The lack of a full USDT audit continues to raise concerns in the crypto sector. As of now, Tether remains under quarterly reporting. A full audit would require more detailed independent verification of the USDT reserves and financial statements.