As I’m sure you are all aware, recently Bitfinex and Tether announced that the relationship between them, and their auditor, Friedman LLP has been dissolved.
“We confirm that the relationship with Friedman is dissolved. Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable time frame. As Tether is the first company in the space to undergo this process and pursue this level of transparency, there is no precedent set to guide the process nor any benchmark against which to measure its success.” - Tether spokesperson
For the purposes of this blog post, we are going to assume the following:
- Tether actually has the dollars.
- Friedman was in fact willing to audit Tether and Bitfinex, but wanted more information than Bitfinex and Tether were willing to provide.
On January 19th, Bitfinex decided to have one of their shareholders (who is also a very large OTC trader), take a look at the bank account balances which he proclaims all of the money is there.
Let’s pretend this is true.