Stablecoin Tether: US Court Orders to Prove Existence of USDT Reserve

The order, issued Tuesday, requires Tether to provide balance sheets, income statements, cash flow statements, and income statements. It also ordered Tether to provide records of all merchants, cryptocurrency and stablecoin transfers, and accounts it has at Bitfinex, Poloniex, and Bittrex.

Judge Failla explained that these documents would be necessary to prove that USDT is backed by US dollars and other real assets. Tether’s lawyers had previously argued that the order was “incredibly excessive” and “unduly burdensome”, but the judge found the documents “undoubtedly important”.

It has been revealed that a US judge in New York has denied Tether’s motion to block the release of its financial records. Therefore, the network must now produce a series of documents related to USDT support.

What’s next for Tether?

Tether (USDT) remains in the Top 3 on CoinMarketCap, but its stablecoin reign has been shaky since New York State Attorney General Letitia James sued the company in 2019. She alleged that Bitfinexwhich is owned by the issuer of Tether, had artificially manipulated the ledgers to hide an $850 million loss.

The company admitted that Tie It was only 74% backed by real assets and has since settled a series of lawsuits, including in February 2021 with an $18.5 million fine.

[Crypto News🚨]

πŸ”Έ US justice asks Tether to provide documents proving USDT support #crypto #NFTDay #nfts #bitcoin

However, doubts remain about the real reserves of the company and now Judge Failla has made the most extreme demand for proof.

It will be interesting to know all the details about Tether accounts and settle this debate once and for all; Judge Failla just made this possible.

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