- The analyst criticized Tether’s supporters for celebrating $700M profit in the Q4 2022 report.
- He also accused Tether of manipulating reports, disclosing insight acquired from an insider.
Tether’s Q4 2022 quarterly report has been criticized by an independent analyst with the Twitter handle Intel_jakal. The analyst asked why the Stablecoin issuer did not pay its non-token debt, which increased by over 300%, despite declaring a net profit of $700 million.
Intel_Jakal has consistently tracked Tether’s attestations since the company started publicizing them. He provides a breakdown of the reports shortly after publication, albeit from a critical angle.
The analyst criticized Tether’s supporters for celebrating the Q4 2022 report, which announced the $700 million profit. According to Intel_Jakal, the report was incomplete and should not attract the kind of applause it received from supporters. He acknowledged the report’s inclusion of the addition of $700 million to the coffers of Tether. However, he noted that it did not provide details of how it arrived at such an impressive figure.
Not debunking the possibility of Tether’s report, Intel_Jakal attempted to reveal how to produce such a report by manipulating the figures. Using an illustrative figure, he explained how to book profits without making them. He even disclosed that he received insight on the possibility of manipulating figures from Tether’s CTO.
Intel_jakal also revealed that the token debt reported by Tether is a loan to debtors and not a write-off by debtors. The analyst claimed to have come up with this aspect of the analysis after strengthening his thinking.
According to him, it did not turn out well for Tether the last time it engaged in such an alleged maneuver, as they got exposed. This time, the analyst claims that rather than attempting to get the cash out as a redemption, the stablecoin issuer has hidden it in token liabilities.