- Katherine Polk Failla is the judge who presided over the case.
- The Tether exchange’s Bitfinex, Bittrex, and Poloniex account information was also requested.
Legal action was taken against the Tether (USDT) network because of allegations that it artificially inflated the price of Bitcoin [BTC] by releasing USDT. There has been a new development in this market manipulation litigation that has been going on for quite some time. Sadly, stablecoins didn’t do well this round.
Tether to Submit Documents
The request filed by Tether to prevent the publication of its financial documents was recently denied by a U.S. Judge in New York. As a result, the network must now generate several papers proving the credibility of USDT. General ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements are included in this group. Additionally, the stablecoin provider must provide evidence of all cryptocurrency and alternative stablecoin transactions. It was also necessary to know the exact timing of the transaction.
Katherine Polk Failla, the judge who presided over the case, said that the plaintiffs “plainly explain why they need this information: to assess the backing of USDT with US dollars.”
The judge further stated:
“The documents sought in the transactions RFPs appear to go to one of the Plaintiffs’ core allegations: that the … Defendants engaged in crypto commodities transactions using unbacked USDT, and that those transactions “were strategically timed to inflate the market.”
The Tether exchange’s Bitfinex, Bittrex, and Poloniex account information was also requested. Bitfinex and Tether settled a lawsuit with the New York Attorney General for a hefty sum of $18.5 million. The lawsuit that began in April 2019 and lasted for a total of 22 months has concluded. The company also confirmed that it will no longer provide trading services to New York residents.