Tether is in discussions with one of the Big Four accounting firms to conduct a full audit of its financial reserves.
Tether is in discussions with one of the Big Four accounting firms to conduct a full audit of its financial reserves, a move that comes amid growing criticism over the company’s lack of independent audits. CEO Paolo Ardoino confirmed that the audit is a “top priority” for the company, which has long faced scrutiny over its transparency. Tether has not revealed which firm—PwC, EY, Deloitte, or KPMG—is handling the audit process, but Ardoino emphasized that the company is working to provide clarity about the assets backing its USDT stablecoin.
Tether’s USDT is claimed to be backed 1:1 by reserves, but critics have raised concerns about the company’s failure to provide sufficient proof of this backing. These concerns were amplified in 2021 when the U.S. Commodity Futures Trading Commission (CFTC) fined Tether $41 million for misleading claims about the reserves backing its stablecoin. At the time, an investigation by New York’s attorney general also found that Tether had made false statements about its token’s backing. As a result, Tether ceased doing business in New York.
Despite this, Tether has continued to grow. The company reported a record $13.7 billion profit in 2024, more than double the $6.2 billion profit it posted in 2023. This surge in profitability has placed Tether in close competition with major financial firms, such as Goldman Sachs, which reported a $14.28 billion profit for the same period. Tether's strong financial performance is largely driven by the widespread use of its USDT token, which allows traders to make fast transactions within the crypto market.
However, Tether's operations have faced challenges in Europe, where the EU’s MiCA regulations forced exchanges like Crypto.com to delist USDT due to the token’s lack of appropriate licensing. Tether has expressed disappointment with these actions, calling them premature and not based on clear reasoning.
In preparation for the audit, Tether appointed Simon McWilliams as its new CFO in 2024. The company’s reserves are managed by Cantor Fitzgerald, a firm formerly led by U.S. Commerce Secretary Howard Lutnick. With the audit now a priority, Tether aims to reassure investors and regulators by demonstrating that its reserves are adequately backed and transparently managed.
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