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The Issuer Of Tether Must Prove The Security Of USDT

Tether issuer is required to provide documents confirming USDT security
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A US court in New York has ordered Tether to prepare financial statements relating to USDT support as part of a lawsuit alleging that Tether colluded in some way to issue a stablecoin to inflate the price of Bitcoin (BTC).

The court requires Tether to produce “general ledgers, balance sheets, profit and loss statements, cash flow statements, and profit and loss statements,” as well as records of any transactions or transfers of Tether’s cryptocurrency or other stablecoins, including information about trading times.

Tether was ordered to share details of the accounts it holds with Bitfinex, Poloniex, and Bittrex.

Lawyers representing Tether attempted to block the release order, calling it “incredibly excessive” and “unduly onerous”, but the presiding judge disagreed, writing that “the documents plaintiffs are looking for are undoubtedly important.”

Binance
Binance

Judge Katherine Polk Failla wrote, “Plaintiffs explain clearly why they need this information: to assess USDT backing in US dollars.”

“The documents requested in the Transaction RFP most likely relate to one of Plaintiffs’ core allegations that Defendants engaged in cryptocurrency transactions using fiat USDT, and that these transactions were strategically timed to inflate the market,” the judge added.

At the same time, there is also a lawsuit before the New York Supreme Court, according to which the New York Attorney General must release documents that he collected during the investigation of Tether reserves.

The New York Attorney General is investigating Tether reserves imprisoned in February 2021 with an $18.5 million settlement.

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