Law Firm Report Released By Tether Confirms $2.55 Billion In Bank Accounts

Tether (USDT) has released a report indicating that it possesses enough United States dollars to back its cryptocurrency. The report was prepared by Freeh, Sporkin & Sullivan LLP,a law firm based in Washington and which was co-founded by a former director of the Federal Bureau of Investigations, Louis J. Freeh.The report however is not an audit but rather a sworn as well as notarized statements from the two banks that indicated that as of June 1 Tether had in its accounts $2.55 billion.

“FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018,” said the report.

According to Freeh, Sporkin & Sullivan LLP Tether selected the examination day. The examination involved the law firm conducting comprehensive studies as well as telephone interviews with key personnel both at Tether as well as its banks. Names of the banks were not disclosed in the report. Freeh, Sporkin & Sullivan LLP also pointed out that no conclusions were arrived at with regards to the compliance of Tether with applicable regulations and laws in any jurisdiction.

The report also noted that Eugene Sullivan, one of the cofounders of Freeh, Sporkin & Sullivan LLP, was a member of the advisory board of one of the banks that Tether uses. Tether shares management and investors with one of the globes biggest digital currency exchanges, Bitfinex.Per the general counsel of Bitfinex, Freeh, Sporkin & Sullivan LLP was hired by Tether three months ago and discussions with auditors are underway with a view of conducting a full audit.

This comes in the wake of John Griffin, a finance professor at the University of Texas who is renowned for spotting financial fraud releasing a paper which alleged that Tether cryptocurrency was used to manipulate the price of Bitcoin (BTC) during last year’s bull run. The paper which was co-authored by Amin Shams, a graduate student, was written after millions of transactions were examined on the BItfinex digital currency exchange.

According to Griffin whenever Tether was issued there was suspicious price activity with regards to Bitcoin. Griffin alleged that Tether was used to offer support to Bitcoin whenever the flagship cryptocurrency was in decline.

Last year in December Bitfinex and Tether were subpoenaed by the U.S. Commodity Futures Trading Commission. Two years ago Bitfinex was fined approximately $75,000 over failure to register with the regulatory body.