Tether Reportedly in Talks with Big Four Firm for First Full Financial Audit

Tether CEO Paolo Ardoino reportedly stated that securing a full audit is a "top priority" as the company seeks to engage a Big Four accounting firm, following recent scrutiny.

Tether, the issuer of the USDT stablecoin, is reportedly in discussions with a Big Four accounting firm to conduct a full audit of its asset reserves and verify its 1:1 backing.

CEO Paolo Ardoino suggested that the audit process would be smoother under pro-crypto U.S. President Donald Trump. The move follows growing concerns within the industry about Tether’s lack of third-party audits and fears of a potential liquidity crisis similar to FTX.

Ardoino emphasized that securing a full audit is a "top priority" and noted that if the U.S. government prioritizes crypto, major auditing firms will take notice. Currently, Tether undergoes quarterly attestations but has yet to complete a full independent annual audit. However, Ardoino did not disclose which of the Big Four firms—PwC, EY, Deloitte, or KPMG—Tether plans to engage.

Tether recorded a profit of $13.7 billion in 2024. Source: Paolo Ardoino

Tether’s USDT remains stable by asserting a 1:1 peg to the US dollar, meaning each USDT token is backed by reserves equal to its circulating supply. These reserves consist of traditional currency, cash equivalents, and other financial assets.

Earlier this month, Tether appointed Simon McWilliams as its chief financial officer to help prepare for a full financial audit.

Industry Concerns Over Tether’s Transparency

Tether’s lack of third-party audits has raised concerns within the crypto industry. In September 2024, Cyber Capital founder Justin Bons warned that Tether poses a major risk to the crypto ecosystem due to its lack of transparency.

“Tether remains one of the biggest existential threats to crypto, as we are expected to trust that they hold $118 billion in collateral without concrete proof,” Bons stated. He also referenced the 2021 CFTC fine against Tether for misrepresenting its reserves.

Around the same time, Consumers’ Research, a consumer protection organization, released a report criticizing Tether for its lack of transparency.

In 2021, the U.S. Commodities and Futures Trading Commission (CFTC) imposed a $41 million fine on Tether for falsely claiming that USDT was fully backed by reserves.

More recently, Tether has expressed frustration over new European regulations, which led to exchanges like Crypto.com delisting USDT and nine other tokens to comply with the Markets in Crypto-Assets (MiCA) framework.

“It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves,” a Tether spokesperson stated.