The US District Court for the Southern District of New York has ordered Tether, the company behind the USDT stablecoin, to disclose information on how exactly the company uses its reserves to keep USDT's rate stable.
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According to the lawsuit, Tether is now required to provide information about "balance sheets, income statements, profit and loss statements" and so on.
The order is a part of a legal battle between a group of investors and iFinex Inc., Tether's parent company. The plaintiffs allege that Tether inflated crypto prices by issuing USDTs that had no backing.
In February 2021, iFinex Inc. agreed to pay $18.5 million in penalties after New York Attorney General found that iFinex and Bitfinex made false statements about the backing of the USDT stablecoin, and about the movement of funds dollars between the two companies to cover up the truth about massive losses by Bitfinex.
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