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Comment by hh3k0 | Hacker News Reader

USDT is a scam and will implode eventually, too.

Is USDT experincing a lot of movement in the wake of this? I can't imagine people looking at USDT with confidence after this, but then again, most of crypto investing seems illogical to me.

They now publish quarterly audits alternating between major accounting firms, and publicly disclose the breakdown of backing assets. Less than 7% is "other," including digital assets.

https://tether.to/en/transparency/#reports

Edit: I falsely claimed they were alternating firms, but it turns out it was just a name change recently. That is my bad.

Attestations, not audits. Tether is able to move assets between accounts on attestation day to show backing, and has done so in the past.

You can read all about it in the NYAG case

Edit: to reply your edit, there was no recent name change. Tether really really wants to give the impression they’re audited, but they have never done one

It’s not just a name change. The purpose of the attestations is to create the illusion of an audit.

They have had the same accounting firm for the past 5 reports, not alternating. " MHA Cayman" is just the new name for "Moore Cayman".

https://www.coindesk.com/markets/2022/01/26/tethers-new-acco...

Also, even per their “audits,” a good deal of their assets are in crypto, which means it’s presently uncollateralised to the tune of tens of billions of dollars.

You falsely claimed they are audits, they are not audits, not in the legal sense of the word. If they claim so then it's Tether who are committing fraud.

https://fortune.com/2021/10/15/tether-crypto-stablecoin-fine...

That's why Bitfinex thus Tether are banned from doing business with US citizens.

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