On Wednesday, Tether (USDT), the issuer of the US dollar-pegged USDT stablecoin, said a recent order by a US judge to provide evidence of USDT support is part of routine discoveries in lawsuits. The company said the decision did not substantiate any of the claims in an ongoing lawsuit:
“We had already agreed to produce enough documents to build the reserves that support USDT, and this dispute only related to the size of the documents to be produced. As always, we look forward to abandoning it in due course of the plaintiffs’ unfounded lawsuit.”
Dating back to October 2019, the lawsuit was filed by a group of investors who alleged that Tether and cryptocurrency exchange Bitfinex engaged in market manipulation by issuing USDT unbacked by the US dollar with the intention of using it to fund volatile cryptocurrencies such as Bitcoin. to buy. Both Tether and Bitfinex have denied the allegations.
So far, the plaintiff’s main objectives are to assess USDT’s coverage with US dollars and to enable a forensic accountant to evaluate USDT reserve. This includes a review of ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements related to Tether’s business.
At the time of publication, Tether claims it has $68.15 billion in assets (collateral) against $67.96 billion in liabilities (stablecoins), with the vast majority of assets comprising cash and commercial paper. The firm has published results of audits of its reserves by independent audit firms in the past. Tether recently expanded the size of its stablecoin issuance to the euro, Mexican peso, Australian dollar and the offshore Chinese yuan.