CTN NEWS – Tether Audit has said an audit of its finances, meant to assure its stability, could still be months off, according to Chief Technology Officer Paolo Arduino.
Without the basic financial guardrails in place to help protect the funds, crypto companies are having issues showing investors their money is safe, The Wall Street Journal reported Saturday (Aug. 27)
Tether Audit firms don’t always publish financial statements.
Crypto firms don’t always publish financial statements and many don’t have anyone checking their books — so even when they’re audited, there are no agreed standards for the digital assets.
One such case is tether audit 2022, which rolled out an array of blogs and press releases to promote its transparency in the wake of numerous crypto firm failures earlier in the year.
The company has faced questions about its revenues.
The company has faced questions before about whether its revenues are sufficient enough, and the Journal noted that tether balance sheet has been promising an audit since 2017.
Tether’s practice thus far has been to publish an “attestation” that shows a snapshot of its reserves and liabilities, signed off by an accounting firm.
However, tether trc20 audits are usually more thorough, and some crypto companies’ attestations sign off on the numbers provided for specific dates and times, without testing transactions before or after — making some attestations more positive than the reality of the situation.
Tether had recently hired auditing firm BDO Italia to help it provide monthly reports on its reserves, PYMNTS wrote.
Related CTN News: