Tether accuses New York attorney-general of handing over documents to the media

The issuer of the USDT stablecoin, Tether, said that the New York attorney-general’s office (NYAG) provided CoinDesk with information about the 2021 proceedings.

At the time, Tether and the Bitfinex exchange agreed to pay $18.5 million to the state as part of the settlement of the dispute. NYAG Letitia James said the two companies “irresponsibly and illegally concealed substantial financial losses.”

Earlier, the issuer petitioned for protection of trade secrets and a ban on disclosure of USDT reserves after CoinDesk’s formal joining the proceedings. The company explained its position that the publication is not a participant in the proceedings and that the agreed terms of the case are not subject to revision.

Under the settlement terms, Tether was to provide the NYAG with quarterly reserve reports over two years. The company said it had diligently fulfilled its obligations.

“Tether initiated this proceeding primarily to prevent the public dissemination of confidential customer data and commercial information that could potentially be used by bad actors. […] However, our commitment to transparency means we must prioritise openness over protracted and unproductive lawsuits in the United States that distract from real problems,” the company said.

Among the disclosed documents are bank statements confirming the issuer’s reserves. The reports also show Tether’s asset-management strategies, including diversification and short-term investments.

According to the company’s representatives, publication of the materials should “debunk unfounded fear, uncertainty and doubt (FUD).” However, the firm noted that some documents may be outdated and not reflect the current state of affairs.

“In mid-2022, we fully eliminated commercial paper from our portfolio, and also sharply reduced the amount of secured loans with a view to bringing them down to zero within the coming months,” the company added.

As reported on June 12, the issuer authorized 1 billion USDT for issuance to replenish reserves. The total market supply stands at 83.5 billion coins.

On June 15, the stablecoin lost parity with the dollar, trading at $0.995. The company said it stood ready to “buy back any amount.”