Tether responds to U.S. judge’s order to produce documents, calls it ‘a routine discovery’

Tether responds to U.S. judge's order to produce documents, calls it ‘a routine discovery’
6 days ago
2 mins read

After the news broke out that a New York district judge ordered Tether (USDT) to produce its financial records to prove the backing of its stablecoin in what some have called a ‘conspiracy lawsuit,’ the blockchain company made a public announcement on the matter.

Specifically, Tether said that it had already agreed to produce the relevant documents from the judge’s order and that the problem was in the scope of the required documents, according to its blog post on September 21.

‘Meritless’ and ‘baseless’ case

In the post, the platform called this a “routine discovery order” which “does not in any way substantiate plaintiffs’ meritless claims,” adding that:

“We 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’ baseless lawsuit in due course.”

As a reminder, Tether and cryptocurrency exchange Bitfinex are being sued over allegations that they conspired to issue the stablecoin in order to manipulate the price of Bitcoin (BTC).

After the plaintiffs demanded that the blockchain company produces all of its financial documents, including “general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements,” Tether requested that the revelation is blocked.

Tether’s motion(s) denied

However, Judge Katherine Polk Failla of the United States District Court for the Southern District of New York denied the request and approved the plaintiffs’ motion that Tether produces all of its records that “relate to the backing of USDT (…) and cryptocommodities transactions (…).”

In addition, the blockchain platform is required to provide records of all its transfers and trades of cryptocurrency or other stablecoins, the information about their timing, as well as any details about its accounts at crypto exchanges Poloniex, Bittrex, and Bitfinex, as Finbold earlier reported.

At the same time, Tether is involved in a different court case, in which it had filed another request to block the release of its financial documents, stating that its stablecoin was “fully backed” in a motion that was also denied by the New York Supreme Court earlier in May.

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Ana Nicenko

Ana Nicenko has a plethora of knowledge and experience as a journalist covering the cryptocurrency and blockchain industries, having written for a variety of projects and organizations. Additionally, Ana has a master's degree in English Language and Literature. At Finbold, she reports news on the digital assets sector.