Attached was ordered by a U.S. judge in New York to produce financial records relating to support for USDT in a lawsuit that alleges Tether conspired to issue USDT as part of a campaign to inflate the price of bitcoin.
The order requires Tether to produce “ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements,” as well as records of all cryptocurrency transactions or transfers or other stablecoins by Tether, including information on the timing of trades.
He also orders Tether to share details of the accounts he holds at Bitfinex, Poloniex and Bittrex.
While attorneys representing Tether decided to block the release order, calling it “incredibly overstated” and “unduly burdensome,” the presiding judge disagreed, writing that the “documents sought by plaintiffs are undoubtedly important”.
“[The] Plaintiffs make it clear why they need this information: to assess USDT support with US dollars,” Judge Katherine Polk Failla wrote.
“Documents sought in the Requests for Proposals of Settlements appear to relate to one of the Plaintiffs’ key allegations: that the…Defendants engaged in crypto commodity trades using unsecured USDT, and that these trades “were strategically timed to inflate the market,” the judge continued.
At the same time, there is also a lawsuit in the New York Supreme Court for the New York Attorney General to release the documents he collected as part of his investigation into the Tether reservations. CoinDesk is a party to this case.
The New York Attorney General’s investigation into Tether’s reserves concluded in February 2021 with an $18.5 million settlement.