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You are here: Home / Bitcoin Industry News / Tether’s New Accounting Firm Is the Old One, With Baggage

January 26, 2022

Tether’s New Accounting Firm Is the Old One, With Baggage

Meet Tether’s new accounting firm, same as Tether’s old accounting firm.

U.K.-based mid-tier firm MHA MacIntyre Hudson, announced Jan. 14 its Cayman Islands office, MHA Cayman, now handles the clients of the Cayman-based Moore Cayman firm, Tether’s accountant.

As far as Tether’s relationship with its accountant is concerned, the change should be insignificant “other than they’re going to see a letter with a different letterhead … unless for some reason they are going to do something different or provide more services,” Francine McKenna, founder and editor of The Dig newsletter, said.

“Both [accounting] practices have grown quickly in parallel since 2016 with identical people, services, management and ownership; hence the transition is seamless from both practices’ perspective,” according to MHA MacIntyre Hudson’s press release.

However, the release does not mention MHA MacIntyre Hudson is dealing with some baggage.

MHA MacIntyre Hudson is currently under investigation by the U.K. Financial Reporting Council, the accounting regulator, according to a report published Jan. 7 in the Financial Times.

FRC is looking at MHA’s audits of the financial statements of MRG Finance UK for 2018 and 2019, ahead of a planned shakeup of the nation’s audit market, according to the FT. MHA is a subsidiary of Baker Tilly International, the 11th-largest auditor of London-listed companies by market value, according to the FT, quoting Adviser Rankings.

Neither Tether nor the parent company of Moore Cayman have responded to a request for comment from CoinDesk.

In July, Tether General Counsel Stuart Hoegner said on CNBC the reason Tether chose to work with Moore Cayman is that it offers a “highly trusted and authoritative view on the accounting field and our attestations.”

Tether, with $78 billion in assets, issues the most popular stablecoin by market cap, USDT. It had promised to produce an audit as early as 2017, but has so far only released an attestation. Audits provide a full look at a company’s financials over a period of time while attestations are snapshots of a company’s balance sheet on a specific date.

Tether had been with Moore Cayman since last February, its fourth third-party confirmation of reserves, after the company dissolved its relationship with New York-based accountant Friedman LLP.

Author: Helene Braun

Filed Under: Bitcoin Industry News

Expert Witness

Ty Sagalow head shotTy Sagalow's unique background in legal, underwriting, policy drafting and claims – and his designation as a “qualified insurance expert” by the United States District Court for the Southern District of California – offers attorneys an unparalleled resource in D&O, E&O and Cyber insurance coverage disputes. He was also named "Most Helpful Expert" in a recent $8.7M coverage decision.

Mr. Sagalow served as Chief Underwriting Officer and General Counsel for AIG Executive Liability (formerly National Union Fire Insurance Company of Pittsburgh, PA), the world’s largest carrier of Directors and Officers Liability and Professional Liability Insurance. As General Counsel, Mr. Sagalow personally wrote or led teams that wrote all the D&O policies and many of the professional liability policies that AIG produced between 1988 and 2000 – policies which continue to serve as the foundational wording for the D&O and professional liability policies in the market today. As AIG Executive Liability’s Chief Underwriting Officer, Mr. Sagalow was charged with all underwriting interpretations and decisions for AIG D&O/E&O policies. In 2009, Mr. Sagalow headed up the team that rewrote all D&O policies for Zurich North America.

Ty is a cum laude graduate of Georgetown University Law Center and holds a LLM from New York University School of Law.

Bitcoin Insurance

Combining his talents as a network security insurance expert and an insurance product development expert, Ty Sagalow is the leading expert on the unique risk and insurance needs of the bitcoin industry.

With the successful sale of BitSecure(tm), the first bitcoin theft insurance policy in February of 2015, he is the first to create a sustainable, robust insurance policy to cover the theft of bitcoins and other virtual currency backed by an A-Rated, global “top 10” Property and Casualty insurance company.

Company Profile

Innovation Insurance Group is an insurance consulting firm and insurance brokerage founded by 30-year insurance executive, Ty R. Sagalow, former Chief Underwriting Officer, General Counsel and Chief Innovation Officer at AIG, and former Chief Innovation Officer at Zurich, NA and Tower Group. IIG focuses on three core practice groups: product development, expert witness services (primarily in the Management and Professional Liability areas), and bitcoin industry brokerage services.

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