U.S. District Court for the Southern District of New York, Judge Catherine Polk Faila, ordered Tether to provide 1-to-1 support for Tether (USDT), a stable coin. The company is required to submit “general ledgers, accounting documents, income statements, cash flow statements, and profit and loss statements” and other documents to the court.
The order was published on September 20. As part of a lawsuit that began in 2019 – the first complaint filed by a group of investors against iFinex, the parent company of Tether and Bitfinex – it alleged that the company manipulated the crypto market by sending unsupported Tether. The desire to increase the value of cryptocurrencies such as Bitcoin (BTC).
Judge Polk Fayla denied iFinex’s requests to block the order, saying the company had already “sufficiently” prepared the documents for the Commodity Futures Trading Commission and the New York attorney general. She also found that plaintiffs’ request for “undoubtedly important” documents “appears to be relevant to one of plaintiffs’ primary claims” and was properly warranted.
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Previously, in September 2021, Judge Polk filed a motion to dismiss plaintiffs’ claims against iFinex under the Racketeer Influenced and Corrupt Organizations Act and charges related to embezzlement or use of crack proceeds for investments.
In the year The deal comes after a 22-month investigation into whether the company was trying to hide its losses — $850 million — by misrepresenting the level of fiat-backed USDT reserves.