[philiphodgen]

This is so interesting to me. A curiosity.

Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law firm — with some PR-value name like Louis Freeh attached to it. Celebrity endorsement?

Why not get a proper audit by Ernst & Young, Deloitte or PwC?

We don’t see mutual fund financials vetted by law firms. Tether is a type of money-market fund.

It doesn’t add up. People behaving strangely . . . .

[PhantomGremlin]

Usually, when you want your financials vetted you go to an accounting firm. I find it curious that they chose a law firm

This was already mentioned in replies a few levels down. But I think it's important enough to repeat:

Earlier this year an accounting firm walked away from them: https://www.coindesk.com/tether-confirms-relationship-audito....

That comes under the category of "things that make you say hmmm ..."

[zik]

It is weird. And really this report comes down to them getting a couple of signed letters from third parties. Why do it this way rather than a normal audit?

[sanxiyn]

A positive interpretation is that Tether is solvent and wants to prove solvency but does not want to deal with non-solvency related audit issues. That's assuming some goodwill... If you don't assume goodwill, what you should conclude from this is anyone's guess.

[TAForObvReasons]

Designed to distract and deflect. Goodwill on financial solvency matters was completely destroyed after they suspiciously "dissolved" their relationship with audit firm:

https://www.coindesk.com/tether-confirms-relationship-audito...

This is somewhat reminiscent of Michael Cohen's "proof" that "[he has] never been to Prague in [his] life." (in his case, a picture of a cover of a US passport). It is not actually proof of anything useful, but does manage to help control the narrative in a specific way

https://twitter.com/MichaelCohen212/status/81899127768556748...

[sanxiyn]

Friedman LLP fiasco is consistent with my positive interpretation.

[duskwuff]

When there's $2B+ at stake, people expect something a little more definitive than "goodwill".

[ct520]

It’s a goodwill gesture without letting too much known. (Worked for companies that did similar when dealing with big banks and were privately held)

[social_quotient]

I think accounting firms generally have requirements to disclose or rather no covenants of privilege... whereas law firms don’t. Attorney client privilege.

[jameshilliard]

> Why not get a proper audit by Ernst & Young, Deloitte or PwC?

I think the reason is quite obvious, it's simply that traditional auditing firms don't have procedures in place for actually auditing crypto.

It should be obvious to anyone familiar with the situation that Tether is fully backed and that the FUD is manufactured.

https://medium.com/@Austerity_Sucks/bitfinexed-is-a-sensatio...