The law firm Freeh Sporkin & Sullivan (FSS) co-founded by the former FBI director Louis Freeh has finished the investigation on Tether’s (USDT) legitimacy, according to Tether Ltd. The company declared that the analysis was conducted to face the accusations that USDT is not backed entirely by the US dollar.
Tether announced on its website that during the control the FSS monitored the bank accounts of the company for a few weeks. During this, the law firm selected two random financial transactions on June 1 to confirm how much money Tether had.
The law firm reported and confirmed that after checking the transactions that the company was holding in the account almost $2.55 billion, a figure roughly equal with the number of tokens in circulation.
We want to make clear some things: all the tethers in circulation are fully backed by USD reserves. Final point. Said a Tether Ltd representative.
While the FSS law firm confirmed that the US dollar fully backs the USDT, Bloomberg reported that the owners of the cryptocurrency did not employ the analysts to do an official audit.
This is the second time when Tether Ltd. employs a law firm to help them dispel the doubts of the investors and authorities regarding the transparency and legitimacy of its operations. Last year the company hired a similar firm Friedman LLP; however, at that time the firm did not find enough evidence to support the fact that the US dollar fully backs USDT.
Regarding the new investigation, the FSS firm stated that it had selected the analyzed transactions without consulting with the cryptocurrency company. They added that Tether provided them full access to the required documentation. On the other hand, the FSS explained that the people who made the checkup are not specialized in accounting and that the analysis is not entirely based on accounting principles.
While this checkup may destroy some of the doubts that USDT is not a legitimate cryptocurrency it does not clarify the recent conspiracy theory regarding market manipulation.