Tether’s (issuer of $USDT) quarterly “attestation” reports are trash.

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7 red flags easy to spot (if you read them carefully)

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1- BDO Italy performs the audit. BDO is not a top accounting firm; Italy’s top accountants don’t work at BDO (no offence.)

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2- The auditor’s report is almost as long as Tether's report because it’s full of caveats. All BDO is doing is verifying the reports prepared by Tether are accurate (of course they are.)

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3- Not a single financial statement is presented. Just a selection of assets supposedly backing USDT outstanding.

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4- CTO said Tether generated $700M in profits without proof or way of verifying this.

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5- BDO only reviewed the accounts as of December 31, 2022 (also compared them to last quarter). No questions were asked about what happened during the quarter.

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6- Key Accounting Policies are usually pages long. Tether’s are as long as a brochure. The report does not comply with IFRS (duh), and BDO does zero auditing of the accounts presented

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7- The values of Tether’s assets have barely changed despite market chaos in every asset class during the last twelve months, raising questions about these assets' valuation (and existence?).

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Link to report: https://assets.ctfassets.net/vyse88cgwfbl/53L8YRM4ZHCEeqlpKbc3Q8/2e6cbcd1593b3e5ea867718c5938d6c8/Std_ISAE_3000R_Opinion_BDO_31-12-2022_Tether_CRR.pdf

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Link to PR: https://tether.to/en/tether-continues-to-demonstrate-strength-of-reserves-reveals-dollar700m-profits-for-q42022-in-latest-attestation-report