Tether (USDT), which is the issuer and USDT-pegged USDT stablecoin said Wednesday that a recent US judge’s order to show evidence of USDT backing was routine discovery in court cases. According to the firm, the decision did no support any claims in an ongoing lawsuit.
“We had already committed to producing sufficient documents to establish USDT’s reserves, so this dispute was merely about the content of the documents that were to be produced. We look forward to resolving the baseless lawsuit filed by plaintiffs in due course.
A group of investors filed the lawsuit in October 2019. They claim that Bitfinex and Tether engaged in market manipulation. Bitfinex issued USDT without the backing of the U.S. dollar, with the intent of using them for volatile cryptocurrencies like Bitcoin (BTC) Tether and Bitfinex denied the allegations.
The plaintiff has so far set out to assess USDT’s backing with U.S. Dollars and allow a forensic accountant evaluate USDT’s reserve. This includes reviewing general ledgers, balances, income statements and cash-flow statements as well as profit and loss statements related to Tether’s operations.
Tether claims that it has $68.15 Billion of assets (collateral), and $67.96 Billion of liabilities (stablecoins). The vast majority of its assets are cash and commercial papers. The firm has previously published the results of independent accountants auditing its reserves. Recent changes have seen Tether expand the range of stablecoin issuances to include the euro, Mexican peso and Australian dollars, as well as the Chinese offshore Yuan.