Tether’s Opaque Operations Raise $118 Billion, FTX-Like Concerns On The Rise
Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...
Tether, the issuer of the largest stablecoin, USDT, faces mounting scrutiny due to its lack of third-party audits and alleged financial opacity. As concerns spread about a potential collapse akin to the FTX debacle, Cyber Capital founder Justin Bons has been vocal about Tether’s operations, calling it a $118 billion “scam” that could destabilize the entire crypto ecosystem.
Despite Tether’s dominance, its opaque business practices, including the lack of a formal audit of its reserves, have raised alarms in the crypto community.
Justin Bons, a crypto analyst and founder of Cyber Capital, recently ignited fresh fears about Tether’s opaque financial operations. In a detailed 17-part thread on X (formerly Twitter), Bons alleged that Tether could be a larger fraud than the now-collapsed FTX exchange.
According to Bons, Tether’s claim of holding $118 billion in collateral lacks any verifiable proof, and the company has yet to undergo a legitimate third-party audit since its inception in 2014.
Bons pointed out that although Tether released an “auditor’s report” with BDO in 2021, this is not the same as a full audit.
“An ‘Auditor’s Report’ or an ‘Accountant Report’ is not a formal audit at all.”
Bons added that Tether had promised a comprehensive audit all the way back in 2015 but failed to deliver.
According to Bons, the absence of transparency makes Tether one of the most significant risks to the entire crypto market, potentially bigger than the infamous collapses of FTX and Bernie Madoff’s Ponzi scheme combined.
Tether’s influence over the
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