{"id":13982,"date":"2022-09-22T14:08:35","date_gmt":"2022-09-22T14:08:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tether-ordered-by-court-to-disclose-assets-backing-usdt-stablecoin\/"},"modified":"2022-09-22T14:08:35","modified_gmt":"2022-09-22T14:08:35","slug":"tether-ordered-by-court-to-disclose-assets-backing-usdt-stablecoin","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tether-ordered-by-court-to-disclose-assets-backing-usdt-stablecoin\/","title":{"rendered":"Tether Ordered by Court to Disclose Assets Backing USDT Stablecoin"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Stablecoin issuer Tether will soon have to demonstrate that its dollar-pegged\u00a0USDT is properly backed as its claims.<\/p>\n

Judge Katherine Polk Failla of the Southern District of New York has ordered Tether to provide all the proof and financial records on the assets and other funds that currently back their USDT stablecoin.<\/p>\n

The court order<\/a> comes after plaintiffs alleged that Tether was used to inflate the price of Bitcoin and was issued unbacked. The Judge\u2019s mandate reads:<\/p>\n

\u201cPlaintiffs plainly explain why they need this information: to assess the backing of USDT with US dollars, and to allow a forensic accountant to assess the USDT reserve.<\/em><\/p>\n

And although the Court understands the position to be that Plaintiffs\u2019 theory is shifting with regard to \u2018other assets\u2019 and other funds, at this stage in the litigation and without compromise by the parties, the Court takes as true Plaintiffs\u2019 representation that this information is necessary to assess its claims regarding USDT backing.<\/em><\/p>\n

The documents sought in the transactions RFPs appear to go to one of Plaintiffs\u2019 core allegations: that the defendants engaged in crypto commodities transactions using unbacked USDT, and that those transactions \u2018were strategically timed to inflate the market.\u2019\u201d<\/em><\/p>\n

Meritless Claims on USDT<\/h2>\n

After Tether unsuccessfully tried to convince the court to deny the plaintiffs request on the basis of it being \u201coverbroad\u201d and \u201cunduly burdensome\u201d, the company released a statement<\/a> <\/p>\n

on its website: <\/p>\n

\u201cThe order that was issued yesterday in the case captioned In Re Tether and Bitfinex Crypto Asset Litigation, is a routine discovery order and does not in any way substantiate plaintiffs\u2019 meritless claims.<\/em><\/p>\n

\u201cWe had already agreed to produce documents sufficient to establish the reserves backing USDT, and this dispute merely concerned the scope of documents to be produced. As always, we look forward to dispensing with plaintiffs\u2019 baseless lawsuit in due course.\u201d<\/em><\/p>\n

Rumors of an unbacked Tether have been going around for years now. Should Tether collapse, it will likely take the entire crypto market down, including Bitcoin<\/a>, since the stablecoin is the most popular asset to quickly buy and transact cryptocurrencies.<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) Stablecoin issuer Tether will soon have to demonstrate that its dollar-pegged\u00a0USDT is properly backed as its claims. Judge Katherine Polk Failla of the Southern District of New York has ordered Tether to provide all the proof and financial records on the assets and other funds that […]<\/p>\n","protected":false},"author":5,"featured_media":13983,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13982"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=13982"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13982\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/13983"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=13982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=13982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=13982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}