Tether to Produce Records on Stablecoin backing
Documents requested as part of lawsuit alleging Tether conspired to inflate price of bitcoin!
Tether Holdings has asserted that its stablecoin, tether, is fully backed and that one tether is redeemable for $1.
Tweet on Tether lawsuit on stablecoin issue
Tether to Produce Records on Stablecoin backing!
Documents requested as part of lawsuit alleging Tether conspired to inflate price of bitcoin
Tether Holdings has asserted that its stablecoin, is fully backed and redeemable for $1, via @WSJ https://t.co/2nd4fput9y— The_Journalbiz (@the_journalbiz) September 23, 2022
A judge for the Southern District of New York ordered the issuer of the largest stablecoin to produce financial records related to the backing of its coin, tether.
Tether Holdings the issuer of the world’s largest stablecoin, will indeed has to produce balance sheets, income statements, cash-flow statements and profit-and-loss statements under the order.
It also will have to provide documents to establish sufficient reserves for its stablecoin, tether, including account statements for all its banks.
The documents are being requested as part of a continuing lawsuit alleging that Tether conspired to issue its stablecoin as part of a campaign to inflate the price of bitcoin. Yet the documents could provide information long sought about the quality of assets supporting the nearly $68 billion stablecoin.
A spokesman for Tether said that the order was routine and “does not in any way substantiate plaintiffs’ meritless claims.” The company has asserted that its stablecoin is fully backed and that one tether is redeemable for $1.
Tether said it had already agreed to give records establishing the backing of its stablecoin. “This dispute merely concerned the scope of documents to be produced. As always, we look forward to dispensing with plaintiffs’ baseless lawsuit in due course,” he added.
So-called stablecoins get their name from their peg to government-issued currencies such as the U.S. dollar.
