Tether: Stablecoin Issuer Ordered to Produce Supporting Documents Showing USDT Backing

• A New York judge has ordered Tether to produce documents that show its USDT backing.
• Tether stands accused of manipulating Bitcoin’s price and causing damages in excess of $1.4 trillion.

Controversy still revolves around Tether’s USDT backing. Not only, but that the stablecoin might have manipulated Bitcoin prices. The current order by a New York judge relates to an ongoing lawsuit alleging that unbacked USDT issuances have caused $1.4 trillion in damage to the market. In the order, the judge noted that documents produced by Tether would clarify whether “Defendants engaged in crypto commodities transactions using unbacked USDT, and whether the USDT “were strategically timed to inflate the market,”

Tether is expected to produce general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements as well as transfers of cryptocurrencies and other stablecoins. The court also seeks to know the timing of any transfers and trades including those it has with associated firms- Bitfinex, Poloniex, and Bittrex.

At the same time, there is a lawsuit against the New York Supreme Court for having an earlier investigation by the office of the New York Attorney General produce its findings from its investigation of Tether. The $850M probe of Bitfinex, Tether ended early last year with an $18.5 million settlement. In addition, Tether admitted no wrongdoing but had to provide reports on USDT’s reserve composition for two years.

Since the order was issued, Tether has issued a statement, confirming its intention to produce the requested documents.

New Order to Produce Reserves Backing : A Routine Discovery Matter In A Meritless Casehttps://t.co/r2qLnuPZ1m

— Tether (@Tether_to) September 21, 2022

It has further clarified in its statement that the order does not in any way “substantiate plaintiffs’ meritless claims.”

Despite the project being marred with controversy, USDT remains one of the most popular stablecoins in the crypto market. At the time of press, USDT has a market cap of a little over $67 billion and is the third largest cryptocurrency by market cap and the largest stablecoin in the market.