The public might be one step closer to learning what assets actually back Tether, following the failure of Tether to block a freedom of information act request that came from CoinDesk back in 2021 that is just now being resolved.
The request, classified as a Freedom of Information Law request, pertains to information on Tether’s reserves that back the USDT crypto stablecoin.
New York Supreme Court Justice Laurence Love has ruled that he is denying and dismissing a petition made by iFinex and related companies, which is said to include both Tether and Bitfinex, to block the request made by Coindesk to the New York State Attorney General. The Attorney General previously investigated Tether following allegations that the crypto stablecoin was not sufficiently backed from mid-2019 through to early 2021.
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In making the ruling, Justice Love stated that “Petitioners having failed to establish that substantive competitive injury requirement under FOIL has been here met, the Court notes that there is a strong public interest in the disclosure of the requested information .. Petitioners have at all times represented to the public that that every outstanding tether was “backed” by, and thus should be valued at, one U.S. dollar .. However, said statements have been found by OAG to be misleading. As established by Respondents’ papers, not only OAG but multiple federal agencies are concerned with Petitioners’ lack of transparency and possible commission of crimes.”
On that basis, Justice Love ordered that the petition to block the freedom of information act request, “is hereby DENIED and DISMISSED in its entirety.”
The decision may yet be appealed by Tether and its related companies. It is unclear at this time when CoinDesk may get access to those materials related to what assets actually back the $68 billion stablecoin.
Information for this briefing was found via CoinDesk and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
