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Tether Ordered To Produce Documentation Of USDT Backing
The order relates to an ongoing lawsuit that alleges that unbacked USDT issuances have caused $1.4 trillion in damage to the market.
Uzma D.
7:58 21st Sep, 2022
Policy

Tether has been ordered by a U.S. Judge in New York to produce financial records relating to the backing of USDT as part of a lawsuit that alleges Tether conspired to issue USDT as part of a campaign to inflate the price of bitcoin.

The order requires Tether to produce “general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements”, as well as records of any trades or transfers of cryptocurrency or other stablecoins by Tether including information about the timing of the trades.

It also orders Tether to share details about the accounts it holds at Bitfinex, Poloniex, and Bittrex.

While attorneys representing Tether moved to block the order to release, calling it “incredibly overboard” and “unduly burdensome”, the presiding judge disagreed, writing that the “documents Plaintiffs seek are undoubtedly important.”

“[The] Plaintiffs plainly explain why they need this information: to assess the backing of USDT with US dollars,” wrote Judge Katherine Polk Failla.

“The documents sought in the transactions RFPs appear to go to one of the Plaintiffs' core allegations: that the … Defendants engaged in cyptocommodities transactions using unbacked USDT, and that those transactions "were strategically timed to inflate the market," the Judge continued.

Concurrently, there is also a lawsuit before the New York Supreme Court to have the New York Attorney General release documents it gathered in its investigation into Tether’s reserves.

Source



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