USDT stablecoin issuer Tether has revealed that the New York State Attorney General’s Office (NYAG) has provided CoinDesk with information about the 2021 trial.
Then Tether and the Bitfinex exchange agreed to pay $18.5 million to the state as part of the settlement of the dispute. NYAG head Letitia James said both companies were “irresponsibly and illegally hiding huge financial losses.”
Previously, the stablecoin issuer petitioned for trade secret protection and a ban on the disclosure of data on USDT reserves after CoinDesk officially joined the process. The company explained its position by the fact that the publication is not a party to the proceedings, and the agreed provisions in the case are not subject to revision.
Under the terms of the settlement, Tether was required to provide NYAG with a quarterly reserve report within two years. The company said that they regularly fulfilled their obligations.
“Tether initiated this investigation in the first place to prevent the public release of sensitive customer data and commercial information that could potentially be used by attackers. […] However, our commitment to transparency means we must prioritize openness over further time-consuming and unproductive U.S. lawsuits that detract from the real issues,” the company said.
Among the published documents there are bank statements confirming the issuer’s reserves. The reports also showcase Tether’s asset management strategies, including diversification and short-term investments.
According to representatives of the company, the publication of materials should “debunk the baseless FUD“. However, the firm noted that some documents may be outdated and not reflect the current state of affairs.
“In mid-2022, we completely eliminated commercial paper from our portfolio, and also sharply reduced the number of secured loans with the goal of minimizing them to zero over the coming months,” Tether added.
Recall that on June 12, the issuer authorized 1 billion USDT for issuance for the purpose of “restocking”. The total market supply is 83.5 billion coins.
On June 15, the stablecoin lost parity with the dollar, dropping to $0.995. The company assured of its readiness to “repurchase any amount.”
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