YEREVAN (CoinChapter.com) —
Tether is preparing for its first full financial audit. The company is reportedly reaching out to a Big Four accounting firm to begin the process. The move comes after growing concerns over Tether’s USDT reserves and transparency.
Tether CEO Paolo Ardoino told Reuters on March 21 that the audit is a top priority. The company already issues quarterly reports, but these are not the same as a full independent audit. A full USDT audit would involve a more detailed review of the company’s finances.
Ardoino did not mention which of the Big Four firms — PwC, Deloitte, KPMG, or EY — the company is working with.
Ardoino Connects USDT Audit Process to Trump Presidency
Paolo Ardoino said the audit might be easier if the U.S. president is supportive of crypto. He referred to Donald Trump, noting that a pro-crypto White House could influence the decision of large firms.
“If the President of the United States says this is top priority for the US, Big Four auditing firms will have to listen,” Ardoino told Reuters.
Tether’s USDT is designed to maintain a 1:1 peg with the U.S. dollar. The company claims the USDT reserves include cash, cash equivalents, and other assets. Without a full audit, these claims remain only partially verified by third parties.
Earlier in March, Tether hired Simon McWilliams as chief financial officer. The hiring was reportedly part of the plan to prepare for the upcoming financial audit.
Tether Reports $13.7 Billion Profit, Critics Still Raise Concerns
Tether reported a $13.7 billion profit in 2024, according to Ardoino. Despite the strong numbers, industry voices continue to express concern. They point to the absence of a full USDT audit as a major issue.
In 2021, the CFTC fined Tether $41 million for making false statements. At the time, Tether claimed USDT was fully backed by reserves. The CFTC determined that this was not always the case.
In September 2024, Cyber Capital founder Justin Bons raised similar concerns. He said, “[Tether is] one of the biggest existential threats to crypto. As we have to trust they hold $118B in collateral without proof.”
Tether Faces Pressure from U.S. and EU Regulators
Tether is under pressure in both the United States and the European Union. In 2024, Consumers’ Research, a U.S. consumer protection group, published a report criticizing Tether for its lack of transparency.
Meanwhile, new MiCA regulations in Europe have pushed exchanges to delist certain tokens. Crypto.com removed USDT and nine other tokens to meet these regulatory changes. A Tether spokesperson commented, “It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves.”
Tether has not confirmed which additional tokens were affected under MiCA rules.
Audit Timeline and Partner Firm Still Unknown
Although Tether has announced its intention to complete a full financial audit, details remain unclear. The company has not shared which Big Four firm it plans to hire or when the audit will start.
Tether has not responded to further questions from the media. The lack of a full USDT audit continues to raise concerns in the crypto sector.
As of now, Tether remains under quarterly reporting. A full audit would require in-depth independent verification of the USDT reserves and financial statements.