Tether laid bare – Due to fairly opaque beginnings in this area, Tether has the greatest difficulty in getting rid of concerns about warranty reserves of its USDT stablecoin. New York justice, particularly on edge against Tether, puts it back on, asking the group’s company iFinex to reveal everything about these famous reserves.
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No more choice: Tether will have to be completely transparent
Despite multiple transparency efforts, nothing works. Tether remains mired in fear that its reserves to ensure theindexing of its stablecoin USDT on the US dollar are insufficient.
Yet, even despite the violent bear market (bear market) on cryptos, and attempted manipulation by short sellingTether held firm, and still has kept his promise to exchange 1 USDT for 1 dollar (and vice versa).
But all this hardly convinces the judge Katherine Polk Failla of the Court of the Southern District of New York. In a court document dated September 19, 2019, we learn that the tether request has been rejected. She was hoping not to have to reveal all of her accounting records.
The accounts of the largest issuer of stablecoins under the magnifying glass
First element therefore, the New York justice asks Tether to transmit the details of its financial registers:
“The plaintiffs make it clear why they need this information: to assess USDT’s hedge to US dollars. (…) The Court upholds the plaintiffs’ representation that this information is necessary to assess its claims regarding the USDT guarantee. (…)”
Second point, in addition to the doubts about the guarantee to cover the USDT, this transparency is also requested in the context of accusations against Bitfinex and Tether, suspected of using the stablecoin to inflate Bitcoin (BTC) price during the 2017 bull run.
“The documents sought in the production requests of the transactions appear to relate to one of the main allegations of the plaintiffs. Namely that the Bitfinex/Tether defendants engaged in cypto-asset transactions using unhedged USDT [par des dollars]. And that these transactions were strategically planned to inflate the market. »
Despite the protracted legal troubles, Tether and Bitfinex don’t slow down efforts in the cryptosphere. Last July, the two companies of the iFinex group did not hesitate to invest millions of dollars in a crypto project related to the Web3.
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