Tether, issuer of the largest stablecoin USDT, is under fire for financial opacity and lack of third-party audits, raising fears of a collapse similar to FTX. Cyber Capital founder Justin Bons has called Tether a "$118 billion scam," citing its dominance in the crypto space without providing verifiable proof of its $118 billion reserves.

Transparency Issues Spark FTX Comparisons Bons criticized Tether’s failure to deliver a comprehensive audit since its inception in 2014. While Tether released an "auditor’s report" in 2021, Bons claims it’s not a full audit. The stablecoin issuer’s lack of transparency, despite controlling 75% of the stablecoin market, is seen as a major risk to the crypto ecosystem.

Governance and Financial Security Concerns Tether’s governance has also raised eyebrows, especially after a $102 million investment in Latin American agricultural giant Adecoagro. With only two board members controlling Tether Holdings, concerns over financial transparency and centralization persist, reminiscent of the red flags before FTX's collapse.

Too Big to Fail? While some experts argue Tether is too big to fail, questions remain about its long-term stability. The stablecoin’s dominance in an industry built on decentralization continues to clash with its opaque practices.

Personal Comment Tether’s lack of transparency and refusal to undergo a full audit is alarming, especially given its outsized influence. The parallels to FTX should not be ignored—if Tether collapses, it could trigger a far-reaching crisis in the crypto world. It's a reminder that transparency and accountability are crucial, even in decentralized systems.

Source: https://cryptonews.com/news/tethers-opaque-operations-raise-118-billion-ftx-like-concerns/ Show Less