The law firm of Freeh Sporkin & Sullivan, LLP (FSS) that are not relevant to the audit, prepared a report on the state of the Bank accounts of the company Tether. Several media outlets drew attention that the document contains a number of reservations and in no way can testify to full financial security tokens USDT, reports CoinDesk.
Itself FSS indicated in the report that made her procedure “is not intended to provide guarantees and should not be confused with the audit,” since the work was undertaken “without observance of auditing and accounting standards.”
General counsel Tether STU, Hagner not denied that FSS has used slightly different procedures than regular auditors, however, is convinced that “a key conclusion was the same.”
“The study is based on the balance in the Bank account at some point in time,” — says Hohner.
This circumstance attracted the attention of the media. FSS “confidently” stated that on June 1 the accounts of the Tether was more money than was required to achieve who was then in circulation token USDT ($2.55 billion in the two banks against 2.54 billion USDT). However, no information about the security token before and after this date is not given.
“The FSS has not carried out any action and not make decisions concerning the activity prior to June 1, 2018 or the next after that date. From this we can conclude that there are no warranties on complete security USDT in the past or at present”, — concluded the journalist.
Along with this they did not deny the presence of FSS of a particular authority, noting that among its founders are three former Federal judges and former FBI Director Louis Freeh.
In favor of the specialists of FSS is talking about the fact that they have chosen the date for checking accounts in two banks Tether “without notice or consultation with the company.” In secret were also specific information requested about the issued to this day USDT.
In turn, STU, Hagner explained the significant reservations contained in the report, a number of difficulties in conducting the audit. In particular, he pointed to the lack of auditor knowledge about the industry of cryptocurrencies and the inability to quickly adapt accounting standards to the new economic realities.
Recall the relationship with the previous auditor, company Friedman LLP, Tether broke six months ago, at the end of January. Then it was due to “the extremely complicated procedures, where Friedman used to verify relatively simple balance sheet Tether”. Because of this alleged “audit could not be conducted within a reasonable time”.