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Friedman LLP no longer auditor of Bitfinex and tether?

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the transparency of tether is doubted for several months, what now culminated with respect to a termination of its Auditpartners Friedman LLP. The coin used as a hedge in times of difficulty for Altcoins is widely used, but no one knows whether he is but really covered by US dollars. This uncertainty can have a big impact on the entire eco-system of the Kryptowährungen.

Who trades on exchanges and with Kryptowährungen, knows the problem: after big gains would be perhaps not completely auscashen, but also not completely dependent on the volatility Bitcoins and other Kryptowährungen. Not all exchanges allow a direct conversion into euros or US dollars, so that presents itself for many tether as a viable middle ground.

Tether is a Stablecoin, whose value is equivalent to one U.S. dollar. According to its own figures, this Kryptowährung developed on the OMNI-platform 100% is secured, which currently would mean that the company behind tether in possession of over $ 2 billion should be.

In recent months, increasing concerns of the integrity of the company behind the Stablecoin came up: tether limited has in fact this capital? If so: where did this large amount of money? Tether is acquired with a small amount directly from the company. It is so not to assume that individual customers the company brought this large sum. Should exchanges have paid the $ 2 billion? The currently 20 tether of supporting exchanges, that would mean that on average each individual 100 million US dollars to the company has paid which in turn arise the question would be, how it is ordered to the liquidity of this company.

See the Twitter – and medium account @Bitfinex’da pseudonymous blogger has repeatedly addressed the close connection between Bitfinex and tether. This connection has been confirmed by the publication of the paradise papers .

Friedman LLP – no audits for Bitfinex more?

@Bitfinex’d cannot be denied, certainly an extreme polemic against Bitfinex and tether. However, the concerns that are addressed in particular as regards the protection of the tether in his articles, can not be denied. There were while audits on the part of the company Friedman LLP in the September 2017, which also had some limitations: so one of the accounts in the name of a trustee should be listed. Friedman LLP pointed out that they cannot guarantee that tether limited has a legally binding agreement with the trustee. Also whether the company on these accounts can be accessed and can answer a withdraw request as soon not investigated.

Since September of last year the market capital of tether has grown also about US$ 300 million to over two billion US dollars. strange appear already the 300 million US dollar: moving the market capital of tether for $ 10 million by early 2017 and may rose to 60 million. End of April there was a dramatic event for the Stablecoin: US dollar could be received. Self tether limited not expected that their numbers would rise substantially. It came different development to see was friendly like on top, so that it is high time for a new audit.

It seems now not to come to this audit: the business relationship between the tether-limited and Friedman LLP company carrying out the audit seems to be completed. This not only speaks a this supposition www article on Cointelegraph but also that any reference to such cooperation have been deleted on the side by the auditor.

An indirect confirmation of this issue has done Giancarlo, CFO of tether and Bitfinex :

“the pressure of US banks prevents that we fully disclose our bank accounts.”

It should be noted that Lao Mao, the CEO of, has stressed over Weibo stressed that bank accounts, on the Bitfinex and tether have access to include even a larger sum.

Possible effects on Bitcoin

yet a little more transparent confirmation would be desirable because, should the creation of tether-token from scratch apply would, that could have a negative impact on the entire ecosystem of the Bitcoin.

The accusation of @Bitfinex’ d goes further as the insinuation of lack of protection of the tether token: large whales such as the Whaleclub and also directly Bitfinex it is assumed with unhedged token artificially to have manipulated the price of Bitcoin. Without too much on the details as wash trading or spoofing to take someone who can print tokens, which shall be an equivalent, would have not only to buy the possibility of large amounts of Bitcoin, but to have turned up the price artificially in this process. Should it so come runs to crypto equivalent to a Bank, the exchanges had not the money to pay off their creditors.

This crypto-run is currently not in sight however, therefore is not carelessness, but no panic necessary, but prudence and attention also. At various points BTC ECHO has always stressed that token for long periods on exchanges should be – should any allegations with respect to Bitfinex confirm and close this exchange of its doors, you would be with wallets and the possession of corresponding Private keys on the right side. Likewise we have called last year users of tether in September to be careful.

Certainly, it is helpful to keep the status of tether in the eye; does this through a table. Also here should be that a reduction of the tether price certainly represents a worrying signal to below 97 cents, but each was broken late April, end of June and end of December emphasized – the Kryptomarkt is gone, then also. In the sense of caution instead of FUD applies as always!


about Dr. Philipp Giese

 Dr. Philipp Giese works as an analyst for BTC-ECHO Dr. Philipp Giese and is specialized in the areas of chart analysis and technology. Also he actively engaged in the crypto community – online as a central point of contact in the slack BTC-ECHO channel, as well as offline as a speaker and interviewer he always maintains the Exchange with startups, developers and visionaries. The PhD physicist can draw on many years of experience as a project manager and technology consultant. Philipp delights here not only for the technological dimension of Kryptowährungen, but also for the underlying socio-economic vision for many years.

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