Consumer advocacy group Consumer’s Research issued a warning to stablecoin issuer Tether in a report released on September 12. The warning highlights issues surrounding Tether's lack of transparency regarding its USD reserves. These reserves are supposed to back Tether's stablecoin, USDT, ensuring its stability.
The report alleges that Tether has not provided a comprehensive audit of its dollar reserves. This raises concerns about the actual backing of USDT, questioning its reliability in the market.
Without transparent audits, consumers and investors may face risks concerning the true value and security of USDT.
