FIRST ON FOX: Consumers' Research group is sounding an alarm to the public about the cryptocurrency 'stablecoin' known as Tether

"Tether has been promising that it would conduct a full audit for years but has still failed to do so," executive director Will Hild told Fox News Digital in a statement.

Consumers' Research, a nonprofit organization dedicated to informing consumers about marketplace issues, is raising the alarm about Tether, a cryptocurrency that operates largely outside the oversight of U.S. financial regulators.

In a statement to Fox News Digital, Will Hild, executive director of Consumers' Research, highlighted the concerns surrounding Tether.

"Consumers' Research is sounding the alarm on Tether, a massive, unregulated currency that threatens to undermine U.S. financial controls."

Hild pointed out that Tether has been promising to conduct a full audit for years, but the company has still failed to do so. He also noted that Tether claims to be 1:1 U.S. dollar-backed and that it has sufficient financial controls in place, but these claims have not been independently verified.

"Tether has been promising that it would conduct a full audit for years but has still failed to do so. Until a credible third-party auditor can verify their claim of 1:1 U.S. dollar backing and that they have sufficient financial controls in place, consumers should be cautious about investing their money with them."

According to Hild, Tether has a history of making false claims and deliberately withholding transparency from the public. He added that Consumers' Research will be sending a letter and a consumer warning to every governor across the country, urging them to protect their constituents from financial harm caused by Tether.

"Consumers should be wary of trusting actors like Tether who have a history of false claims and a deliberate lack of transparency. On Friday, Consumers' Research will be sending a letter and consumer warning to every governor across the country warning them about the dangers of Tether and asking them to take steps to protect their constituents from financial harm."

The organization's efforts come amid a Wall Street Journal report that sheds light on a parallel economy facilitated by Tether, which operates beyond the oversight of U.S. law enforcement. The report highlights the massive scale of Tether's network, with nearly the same amount of money flowing through it in 2023 as through Visa cards. Additionally, Tether reportedly generated more profit in a single quarter than BlackRock, despite having a tiny fraction of the workforce.

"A giant unregulated currency is undermining America’s fight against arms dealers, sanctions busters and scammers. Almost as much money flowed through its network last year as through Visa cards. And it has recently minted more profit than BlackRock, with a tiny fraction of the workforce."

Consumers' Research will also be launching a digital radio ad blitz to raise awareness about the alleged risks posed by Tether, and they have created a website called TetherWarning.com to provide further information.

Moreover, the organization's letter suggests implementing some regulatory frameworks to protect consumers from fraud while integrating cryptocurrency into the financial system.

"In addition to warning consumers and state officials about Tether, Consumers' Research is also urging state legislatures to adopt the Digital Assets Marketplace Framework, which would create a uniform state regulatory framework for digital assets and protect consumers from fraud while integrating cryptocurrency into the financial system."

This week, Tether, crypto祉urrency Tron and crypto intelligence firm TRM Labs joined forces to combat crypto crime, forming the T3 Financial Crime Unit, according to Forbes.

Fox Business reached out to Tether but did not hear back by press deadline.

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