The fifth largest accounting network in the world's independent BDO Italia affiliate and Tether began working together in July, the business said in a news release on Thursday. The former assurance partner for Tether was the Cayman Islands-based accounting firm MHA Cayman. So what happened between them?
As international regulators press down on digital asset services, Tether Holdings Ltd. has changed course and entered an arrangement with the Italian division of accounting firm BDO LLP to produce quarterly attestations on the stablecoin operator's reserves. Later this week, the issuer of USDT, the largest stablecoin in the world with $67 billion in token circulation, is anticipated to publish an attestation on its second-quarter reserves.
An inquiry about BDO's relationship with Tether was not answered.
Tether and MHA Cayman Relationship, and About MHA Cayman Investigation
Moore Cayman is currently functioning under the moniker MHA Cayman, however the parent company of the business is being investigated in the U.K. Tether's fourth third-party certification of reserves was with Moore Cayman in February of last year after the business severed ties with New York-based accountant Friedman LLP.
According to a Financial Times article from January 7, MHA MacIntyre Hudson is presently the subject of an inquiry by the U.K. Financial Reporting Council, the country's accounting watchdog. FRC is examining MHA's audits of MRG Finance UK's financial statements for 2018 and 2019 in advance of a planned restructuring of the country's audit industry. According to the FT, which cited Adviser Rankings, MHA is a division of Baker Tilly International, the 11th-largest auditor of London-listed businesses by market value.
Tether Hopes to Publicize an Audit Soon
The stablecoin issuer needs to address a number of "unsubstantiated conclusions" that the WSJ drew, according to a statement provided by Tether on Tuesday (August 30, 2022).
On August 27, The Wall Street Journal published a piece stating that Tether has not yet provided the audit that has been anticipated since 2017. The magazine claims that the stablecoin issuer keeps releasing an attestation that is approved by its accounting firm and that provides a snapshot of its reserves and liabilities.
Tether asserted that its transactions have been open and transparent while stating that it was working toward delivering an audit.
Tether revealed that rather than quarterly, the firm's attestation reports for its USDT reserves would instead be published monthly. Furthermore, the stablecoin issuer confirmed that BDO is not a "Tether accounting firm," as alleged in the WSJ piece, but rather a recognized and impartial top 5 audit business.
In its answer to the Wall Street Journal, Tether stated that its three months' worth of Treasury Bills is a secure bet because they have long been considered the best safe asset.
