Tether seeks court protection for confidential information from CoinDesk

Tether petitioned to protect confidential information and bar disclosure of data on USDT reserves. The statement was published amid CoinDesk’s official joining of the stablecoin issuer’s proceedings with the New York Attorney General (NYAG).

In June, the news agency filed a request with the NYAG for any documents relating to USDT reserves. In February, the department obtained these data in the course of settling the company’s case over financial operations tied to an $850 million loss.

NYAG staff initially rejected the outlet’s request, but CoinDesk gained access on appeal. Tether said that disclosure of such data would put its competitive advantage at risk, and petitioned to bar disclosure.

CoinDesk noted that the petition to appeal should be denied, as the public interest in this case outweighs commercial secrets.

Tether added that CoinDesk and the stablecoin issuer Circle (USDC) share an investor through Digital Currency Group.

“CoinDesk’s publication of its legal documents does not warn readers about this egregious conflict of interest. Using the media as a weapon is a disservice to the ecosystem,” according to Tether’s statement.

In August, the auditing firm Moore Cayman confirmed 100% backing with assets. However, cash and bank deposits accounted for 10% of the reserves, and 49% consisted of commercial papers.

In October, the research firm Hindenburg Research doubted the reliability of the information on USDT reserves and offered a $1 million reward for the disclosure of previously unknown information about them.

Earlier that month, the US Commodity Futures Trading Commission ordered Tether and Bitfinex to pay civil penalties totaling $42.5 million.

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