Tether’s petition to keep reserve records hidden from the public was denied
Tether’s (USDT) petition to the state of New York’s supreme court for permission to exclude the public from viewing documents that describe the composition of the firm’s reserves over the previous few years was denied.
Crypto Whale, who tweeted the documents on May 17, specifically uploaded the judgment and order on motion with the ‘leave to file’ ruling.
Attorneys for the stablecoin issuer Tether and its parent company, iFinex, retaliated against CoinDesk in February by filing a lawsuit against the publication with the New York attorney general’s office (NYAG), claiming:
“The records at issue here include Bitfinex and Tether’s closely guarded, non-public internal records that were developed at considerable expense and could not be acquired by its competitors other than through this FOIL request.”
Tether paid the (NYAG) $18.5 million for its involvement in Bitfinex’s attempt to cover up a $850 million hole in its payment processor a year ago.
Bitfinex and Tether “recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines,” according to a press release from New York Attorney General Letitia James.
Tether and Bitfinex must also file asset reports every quarter. CoinDesk requested the reserves under FOIL after USDT issuer disclosed its financial sheet to the NYAG. The firm, on the other hand, filed the NYAG’s office in August, claiming that releasing its financial statement would “tilt the competing playing field against Tether.”
The stablecoin issuer announced in a statement released on February 4 that: “The settlement specified what information should be disclosed publicly (such as a breakdown of Tether’s reserves by category) and what should be disclosed privately to NYAG (such as particular investment details). The private aspects are those that no business would publish for the competition to exploit.”
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Hazel
CoinCu News
Crypto Whale, who tweeted the documents on May 17
