Law Firm Report Claims Tether Fully Backed by USD Reserves

Tether have released a report from a law firm that claims the controversial token is backed by US dollars, according to Reuters.

The digital token connected with the BitFinex exchange has been facing extreme pressure and criticism from both regulators and the public concerned that it was printing US dollars out of thin air.

A University of Texas research paper had alleged that this process led to the huge increase in valuation of cryptocurrency markets last year, with billions of Tether tokens worth exactly $1USD being printed regularly.

The report, from Freeh, Sporkin & Sullivan LLP, a Washington-based Law firm headed by former FBI director Louis J. Freeh claims that Tether holds USD equal to the value of Tether’s market cap. Lawyers allege to have receive notarized bank statements from the company totally $2.55b on 1st June.

Tether have long denied allegations of wrong-doing, with Stuart Hoegner, Bitfinex’s general counse telling reporters:

“These allegations of manipulation are … just completely misplaced,”

Whilst Tether have denied accusations, they have failed to provide a full external audit to prove they hold reserves backing the digital token, even under intense pressure and subpoenas from US regulators.

Today’s announcement does not put Tether and the Bitfinex exchange fully in the clear. The report was not an audit, and the company have not opened their doors to external regulators.

Critics of the token now also traded on Poloniex and Binance, will not be fully placated by today’s news. It is a positive step, and those fearfully awaiting a Tether catastrophe can finally take a breath of fresh air.