Tether Targeted by Billboard Campaign Over Audit Refusal and Alleged Corruption

A new campaign spotlighted on billboards and ads accuses Tether of corruption and criminal activities, urging transparency and independent audits.

A new campaign targeting the world’s largest stablecoin issuer, Tether, has launched, spotlighting allegations of corruption and illicit activities. As reported by Eleanor Terrett, a Fox Business journalist, the campaign features a digital billboard in Times Square, New York City, along with mobile billboards, a television ad, and a dedicated website, TetheredToCorruption.com.

🚨NEW: A digital billboard accusing the world’s largest stablecoin @Tether_to of corruption is being featured in Times Square, NYC right now. https://t.co/tH71Z0tLYS pic.twitter.com/QoBHXYrGOe

— Eleanor Terrett (@EleanorTerrett) June 18, 2024

Allegations Against Tether

According to Terrett and former Fox reporter Jon Michael Raasch’s post, Consumers’ Research, a conservative nonprofit organization, is leading this campaign. Executive Director Will Hild has voiced significant concerns about Tether’s business practices, citing a decade-long refusal to undergo independent audits.

Hild claims that Tether’s lack of transparency is reminiscent of the FTX scandal. The campaign underscores Tether’s alleged involvement in criminal activities, including drug trafficking, human trafficking, evading sanctions, and funding terrorist organizations like Hamas.

Concerns Over Criminal Activity

The campaign asserts that Tether has become the preferred stablecoin for criminals in 2023. It alleges that Tether is frequently used by bad actors due to its stable value, which is pegged one-to-one with the U.S. dollar.

Hild mentioned that Tether has been reportedly used by Russia to evade monetary sanctions and by countries like Venezuela. Additionally, it is claimed to be a tool for human traffickers.

Audit Refusal and Stability Concerns

A primary issue highlighted by Consumers’ Research is Tether’s refusal to conduct an independent audit to verify its claim of being fully backed by U.S. dollars. This refusal has raised concerns, with some comparing Tether to a Ponzi scheme.

Hild noted the similarities between Tether and FTX, emphasizing that both operate outside the United States and face allegations of questionable financial practices.

Recent Developments from Tether

Tether has persistently debunked similar accusations in the past. Despite the recent ones, the firm recently introduced a new asset class, Alloy by Tether, secured by Tether Gold. The project aims to combine the reliability of gold with the stability of a pegged currency, enhancing stability in the digital economy.

Alloy by Tether represents a new category of digital assets, called tethered assets, designed to reflect the value of underlying assets. These assets use stabilization methods, including over-collateralization with liquid assets and leveraging secondary market liquidity pools.