Tether Co-Founder Interrogated About Lack of Disclosure

Andrew Ross Sorkin of CNBC’s Squawk Box recently pressed Tether co-founder Reeve Collins on the lack of transparency surrounding the leading stablecoin issuer’s reserves.

Sorkin, citing a recent Wall Street Journal article, highlighted the fact that Tether does not publish its audited financial statements, leaving outsiders in the dark. “If you do have reserves, why don’t you show them,” Sorkin inquired.

According to Collins, Tether has always redeemed each token for “exactly one dollar.” He also claims that the company employs the best risk-mitigation strategies in the industry. “It has stood the test of time,” he explained.

Although the investor claims that Tether publishes proof of its reserves, he believes it is acceptable for people to question the company’s transparency.

Collins, who sold Tether in 2015, believes that the industry will become more transparent as a result of the recent string of failures. Tether has been one of the most contentious cryptocurrency companies, with critics, dubbed “Tether truthers,” claiming that the company is a sham.

The CFTC charged and settled charges against Tether last October after accusing the company of lying about the backing of its flagship USDT stablecoin. The largest stablecoin issuer is also the subject of a $1.4 trillion class-action lawsuit accusing it of large-scale fraud.

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