Tether released a law firm report on Wednesday that it hopes will allay ongoing concerns about whether the company’s USD reserves are sufficient to back the Tether cryptocurrency. The report from law firm Freeh, Sporkin & Sullivan LLP (FSS) cites information provided by Tether’s banking partners confirming that the company had roughly $2.55 billion in U.S. dollar reserves on June 1 – more than enough to back every Tether currently in circulation.
According to Reuters, the report was not the product of a full audit. Instead, FSS reviewed sworn affidavits from the company’s two banks, and relied on “comprehensive examinations and telephone interviews of key personnel at Tether and its banks.” FSS chose the June 1 review date.
The report’s conclusion about Tether’s USD holdings was clear:
“FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018.”
That conclusion is unlikely to end the ongoing debate over Tether, however. The report seemed to acknowledge as much, noting that “FSS did not, as part of the Engagement, arrive at any conclusions as to Tether’s compliance with applicable laws and regulations in any jurisdiction.”