In connection with a complaint regarding the issuance of USDT without support and its damage of 1.4 trillion dollars to the market, the American court asked Tether to provide a report of financial records related to this stablecoin.
According to Blockchain Homeland and quoted by Kevin Desk, New York State Judge to Tether has ordered To provide financial records related to USDT backing. This ruling is part of a lawsuit in which Tether is alleged to have issued unbacked USDT as part of a campaign to raise the price of Bitcoin.
This ruling has required Tether to provide its ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements, as well as records of all transactions and transfers of cryptocurrency or other stablecoins by Tether with information related to the transactions. to give
In this ruling, it is also stated that Tether must provide the details of the accounts it has in Bitfinex, Poloniex and Bittrex exchanges.
Although Teter’s lawyers tried to prevent the issuance of this sentence and called it too strict and unnecessary, the judge of this case disagreed with the opinion of Teter’s lawyers and wrote that the documents that the plaintiffs are looking for are of special importance.
Judge Katherine Polk Failla has acknowledged in this regard:
The plaintiffs have clearly explained that their reason for accessing said information is to evaluate the USDT’s dollar backing.
The mentioned documents are related to one of the main accusations of the plaintiffs. The indictment alleges that the defendants involved in the cryptocurrency transactions used unbacked USDT and that the transactions were strategically timed to create market inflation.
In addition to the aforementioned case, another complaint has been submitted to the New York Supreme Court. In this complaint, the New York prosecutor has submitted to the court the documents he collected from the inspection of Tether reserves. The New York prosecutor’s investigation of Tether reserves ended in February 2021 with an $18.5 million settlement.