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Tether Ordered to Produce Documentation of USDT Backing

Written by: Qadir AK

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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Sep 21, 2022

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As part of a case that claims Tether colluded to create USDT as part of an effort to raise the price of bitcoin, a U.S. Judge in New York has ordered Tether to submit financial information relevant to the backing of USDT.

Tether is entitled to produce balance sheets, Income statements, cash flow statements, general ledger, and any trade or transfer of the cryptocurrency or other stablecoin by including the time the trade took place 

Tether to disclose details concerning Bitfinex, Poloniex, and Bittrex

Additionally, it directs Tether to divulge information regarding its , , and accounts. The presiding judge dissented, stating that the “records Plaintiffs seek are without a doubt relevant,” despite the fact that Tether’s counsel had tried to delay the order to disclose, calling it “extremely excessive” and “unduly burdensome.”

According to Judge Katherine Polk Failla, the explain the importance of this information in backing of US dollar and USDT

He went on to state, “The records requested in the transaction RFPs appear to relate to one of the Plaintiffs’ central claims: that the Defendants engaged in cryptocurrency transactions using unbacked USDT, and that those transactions “were purposefully timed to inflate the market.

In parallel, a case seeking the release of records amassed during the New York Attorney General’s inquiry into  reserves is currently being heard by the New York Supreme Court.

The investigation of Tether’s reserves by the New York Attorney General was resolved in February 2021 with an $18.5 million settlement.This news has left Tether USDT trading at $1.00 with a trading volume of $49,011,085,575 and a market capitalization of $70,163,514,335. The total circulating supply in the market is $ 67.96B USDT according to the coinmarketcap.

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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