Bitfinex and Tether is unauditable: Why they will never do a real audit

tether
bitfinex
audit
friedman

#1

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.

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#2

It really is absurd at this point. Tether and Bitfinex should just implode and call it a day. All of this back and forth talk between auditing is getting pretty tiresome.


#3

If they were insolvent they SEC would’ve shut them down when they were subpoenaed. Considering the billions sloshing in crypto around I don’t know why it’s so hard to believe there are 2 billionish tethers backed by real money.

Just my unpopular opinion. :stuck_out_tongue:


#4

Agreed. If Tether does somehow survive this current round scrutiny, perhaps the issue will go the way of BTC forks, where eventually everyone becomes so tired of it that apathy sets in. The old “out of sight, out of mind” mentality, without ever addressing the issue.

Either way, it’s a ticking time bomb. I’d love to get this over with already so that we can move on.