Tether, the stablecoin issuer, has come under fire from an independent analyst known as Intel_jakal, who criticized the company’s Q4 2022 quarterly report. Despite declaring a net profit of $700 million, the analyst questioned why Tether did not pay its non-token debt, which increased by over 300%. Intel_jakal has been tracking Tether’s attestations since the company started publicizing them and provides a breakdown of the reports shortly after publication, albeit from a critical angle.
The analyst criticized Tether’s supporters for celebrating the Q4 2022 report, which announced the $700 million profit. According to Intel_jakal, the report was incomplete and should not attract the kind of applause it received from supporters. He acknowledged the report’s inclusion of the addition of $700 million to the coffers of Tether. However, he noted that it did not provide details of how it arrived at such an impressive figure.
Not debunking the possibility of Tether’s report, Intel_jakal attempted to reveal how to produce such a report by manipulating the figures. Using an illustrative figure, he explained how to book profits without making them. He even disclosed that he received insight on the possibility of manipulating figures from Tether’s CTO.
Intel_jakal also revealed that the token debt reported by Tether is a loan to debtors and not a write-off by debtors. The analyst claimed to have come up with this aspect of the analysis after strengthening his thinking. According to him, it did not turn out well for Tether the last time it engaged in such an alleged maneuver, as they got exposed. This time, the analyst claims that rather than attempting to get the cash out as a redemption, the stablecoin issuer has hidden it in token liabilities.
Tether’s Q4 2022 quarterly report has been a topic of discussion in the crypto community, with many questioning the company’s transparency and accountability. The stablecoin issuer has been embroiled in controversies in the past, with allegations of market manipulation and lack of transparency. Tether has always denied these allegations and maintained that it operates with the highest level of integrity and transparency.
The latest criticism from Intel_jakal raises questions about Tether’s financial reporting and accounting practices. The stablecoin issuer has not responded to the allegations, and it remains to be seen how it will address the concerns raised by the independent analyst.
The crypto industry has been grappling with issues of transparency, accountability, and regulation. Stablecoins like Tether have come under scrutiny from regulators worldwide, with some countries banning their use altogether. The controversy surrounding Tether’s Q4 2022 quarterly report only adds to the growing concerns about the stability and reliability of stablecoins.
It is essential for stablecoin issuers to be transparent and accountable in their financial reporting and accounting practices. The crypto industry is still in its early stages, and it is crucial for companies to build trust and credibility with their stakeholders. Tether’s Q4 2022 quarterly report controversy highlights the need for greater transparency and accountability in the crypto industry.
In conclusion, Tether’s Q4 2022 quarterly report has come under criticism from an independent analyst who questioned the company’s financial reporting and accounting practices. The controversy only adds to the growing concerns about the stability and reliability of stablecoins. It is essential for stablecoin issuers to be transparent and accountable in their financial reporting and accounting practices to build trust and credibility with their stakeholders.
