SNEAK PEEK
- A U.S. judge has ordered Tether to produce financial records.
- The order is associated with a lawsuit that is underway and alleges that unbacked USDT issuances have damaged the market with over $1.4 trillion.
- Tether is accused of conspiring to issue USDT to inflate Bitcoin’s price.
A U.S. judge has ordered Tether to produce financial records associated with the backing of USDT. Tether has been accused of conspiring to issue USDT as a campaign’s part to blow up Bitcoin‘s price.
As per the order, Tether has to produce balance sheets, cash-flow statements, general ledgers, profit & loss statements and income statements. Records of trades or transfers of crypto or other types of stablecoins with details regarding the timing of the trades have to be produced too.
Moreover, Tether must share information regarding the accounts it owns at Tether Poloniex, Bitfinex and Bittrex.
Attorneys that are representing Tether attempted blocking the order and called it unbelievably overboard and excessively troublesome. However, the presiding judge opposed and wrote that “documents Plaintiffs seek are undoubtedly important.”
Katherine Polk Failla, the judge, wrote:
[The] Plaintiffs plainly explain why they need this information: to assess the backing of USDT with US dollars.
Adding further, the judge mentioned that documents found in the transactions RFPs seem like going to one of the Plaintiffs’ key allegations stating that defendants involved in cyptocommodities transactions utilizing unbacked USDT and the transactions were timely planned to inflate the market.
Simultaneously, there is a lawsuit in front of the New York Supreme Court which is to make the New York Attorney General release documents collected by it in its investigation into Tether’s reserves.
The New York Attorney General’s investigation into reserves of Tether winded up last year in February with settlement of $18.5 million.
