New York judge orders Tether to provide documents on USDT reserve

Tether is facing fraud allegations and needs to prove 1 to 1 backing of its stablecoin USDT. This case started in 2019 when a group of investors complained about iFinex, Tether’s parent company, that manipulated the crypto market by issuing unbacked Tether with the intention to inflate the price of cryptocurrencies to the detriment of traders.

The court requested “general ledgers, balance sheets, income statements, cash-flow statements, and other financial documents".

The stablecoin issuer argued against the order.

Bloomberg reported that US legislators are working on a comprehensive stablecoin regulation bill to ban algorithmic stablecoins similar to TerraUSD for the next two years. Also, the bill would allow banks and non-banks to issue stablecoins based on specific procedures.

Terra’s implosion back in May has increased calls for regulations in stablecoins.

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