Court Asks Tether To Submit Memos Supporting Backing of USDT

Ashish Kumar
September 21, 2022
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Tether, publisher of the largest stablecoin in the digital asset industry is dealing with legal trouble these days. However, USDT is also losing its dominance to the USDC, Circle’s stablecoin. However, a U.S Judge has asked Tether to produce financial records.

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Will Tether produce docs?

As per the order, Tether needs to produce crucial financial documents which depict its backing for USDT. The stablecoin firm has been alleged of issuing USDT as part of a campaign. Reportedly it was done to inflate the price of Bitcoin (BTC).

Meanwhile, it has also been asked to provide details regarding its accounts at Bittrex, Bitfinex, and Poloniex. The order states that USDT needs to register all transfer records of any digital assets or stablecoins. Tether will have to produce memos like general, ledgers, balance sheets, and other financial statements.

However, Tether attorney tried to block the order to release financial information calling it ‘overbroad in the extreme’. It mentioned that the Plaintiffs haven’t provided any basis for demanding such an unbounded production.

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What do Plaintiffs want to prove?

Attorney added that it is a broad request and it is neither tailored to plaintiffs’ claims nor necessary for the production. Meanwhile, the Plaintiffs are attempting to justify their request by claiming it will help them to resolve certain matters.

The plaintiffs seek to resolve to what extent USDT was backed by US dollars. While they do not dispute that the Tether has already agreed to produce documents required to establish USDT reserves. While memos sufficient to prove the collateral or backing received for each issuance of the USDT will also be produced in the court.

Meanwhile, the global stablecoin market has also taken a huge hit due to the collapse of TerraClassicUSD. USDT is losing its dominance in the stablecoin market to USDC. Tether’s USDT is holding a market cap of over $67 billion while USDC holds $50 billion of market value.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.