Tether Criticized for Reported Profit Manipulation

Tether's Profit Controversy

An independent analyst has raised concerns over Tether's Q4 2022 financial report, questioning the stablecoin issuer's reluctance to address its non-token debt, which surged by over 300%, despite declaring a net profit of $700 million. The analyst suggests that the report, celebrated by Tether's supporters, may be incomplete and lacking transparency.

Questionable Financial Practices

The analyst, known for critically evaluating Tether's attestations, argues that the impressive profit figure lacks detailed explanation. He highlights the possibility of report manipulation, suggesting that profits can be booked without actual financial gains. This claim is based on insights allegedly received from Tether's CTO, who purportedly explained how such figures could be manipulated.

Hidden Liabilities

Further analysis reveals that the reported token debt is not a write-off but rather a loan to debtors, hinting at financial maneuvering. This practice, according to the analyst, has previously led to negative exposure for Tether. He claims that the company is now concealing cash in token liabilities instead of processing it as redemptions.

Implications for Tether

These revelations cast doubt on Tether's financial transparency and raise questions about its accounting practices. The analyst's findings suggest that stakeholders should demand greater clarity and accountability from the stablecoin issuer to ensure trust and integrity in its financial disclosures.