Tether’s petition to the New York Supreme Court for permission to deny public access to the documents detailing the makeup of its reserves over the past few years has been denied.
On Wednesday, Crypto Whale posted both the verdict and the order on motion with the “leave to file decision” on Twitter.
Lawyers for stable coin issuer Tether and its parent company Bitfinex took a stand against CoinDesk in February 2022 by filing a lawsuit between the website and the office of the New York Attorney General’s Office (NYAG), stating, “The records at issue here include Bitfinex and Tether’s closely guarded, non-public internal records that were developed at considerable expense and could not be acquired by its competitors other than through this FOIL request.”
Also, Tether settled a case with NYAG for $18.5 more than a year ago as it played a role in its parent company’s attempt to plug an $850 million hole following a problem with its payment processor Crypto Hide Capital Coas rp. “Bitfinex and Tether recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines,” stated NYAG Letitia James.
Furthermore, Tether (USDT) is the largest issuer of stable coins in the cryptocurrency market, with a market cap of over $74 billion. But many of its holders seem to be losing their faith in the coin after the UST/LUNA collapsed last week.
The dwindling confidence in USDT was further complicated by the article published on Monday by the Tether’s Official Website, titled, “How Tether USD₮ Is Able to Maintain Its Peg When Other Stable coins Fall.”
As per the title, the article should have detailed how the USDT $1 peg is being maintained to calm its holders’ nerves. However, no professional explanation was provided as to how this peg is maintained, but the article explained more about why Tether should be trusted based on its track records, which is insufficient given the current tensions in the crypto industry.