Tether says new court order to document USDT reserves backing is a “routine discovery matter”

Tether says new court order to document USDT reserves backing is a

On Wednesday, , the issuer of the dollar-backed stablecoin USDT, said that the recent order by a US judge to provide evidence of USDT backing is part of routine discovery in court cases. The company said the decision did not substantiate any of the allegations listed in an ongoing lawsuit:

“We had already agreed to submit sufficient documents to establish the reserves supporting USDT, and this dispute was simply about the scope of the documents that needed to be submitted. As always, we look forward to dispensing with the plaintiffs’ unfounded claim in due course.”

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The lawsuit originated in October 2019 and was filed by a group of investors who allege that Tether and cryptocurrency exchange Bitfinex engaged in market manipulation by issuing USDT that were not backed by the US dollar with the intention of using it to buy volatile cryptocurrencies like (). Both Tether and Bitfinex have denied the allegations.

So far, the main objectives of the plaintiff are to evaluate the USDT backing in US dollars and to allow a forensic accountant to evaluate the USDT reserve. This includes a review of the general ledgers, balance sheets, income statements, cash flow statements, and profit and loss accounts related to Tether’s operations.

Read the full article on Cointelegraph

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