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. CoinDesk is a party to this case.
The New York Attorney General’s probe into Tether’s reserves concluded in Feb. 2021 with an $18.5 million settlement.
Sign up for First Mover, our daily newsletter putting the latest moves in crypto markets in context.
By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
DISCLOSURE
Please note that our
and
do not sell my personal information
has been updated
.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a
strict set of editorial policies.
CoinDesk is an independent operating subsidiary of
which invests in
and blockchain
As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of
which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG
.