Last Updated on September 22, 2022 by Bitfinsider
The creator of the stablecoin that is pegged to the US dollar, Tether (USDT), claimed on Wednesday that a recent court ruling requiring the production of USDT backing documentation was simply part of ordinary legal discovery.
The company said the following: “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,” that none of the allegations made in an ongoing litigation were supported by the decision.
A group of investors filed the complaint in October 2019 and claimed that Tether and the cryptocurrency exchange Bitfinex had manipulated the market by producing USDT that were not pegged to the dollar with the objective of utilizing them to buy erratic cryptocurrencies like Bitcoin (BTC). Tether and Bitfinex have both refuted the claims.
The plaintiff’s primary goals at this point are to determine whether USDT is backed by US dollars and to permit a forensic accountant to examine the USDT reserve. This entails a study of the financial records for Tether’s activities, such as the general ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements.
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