THE COURT HAS ACCEPTED THE PLAINTIFFS REQUESTS TO PROVIDE UNDOUBTEDLY IMPORTANT DOCUMENTS
United States District Court Judge for the Southern District of New York, Katherine Polk Failla, ordered Tether to demonstrate 1:1 support for its namesake stablecoin, Tether (USDT). The company is required to provide the court with "general ledgers, balance sheets, profit and loss statements, cash flow statements and profit and loss statements" and other documents.
The order was made public on September 20 as part of a case that began in 2019 – an initial complaint by a group of investors against iFinex, Tether and parent company Bitfinex, alleging that the firm manipulated the crypto market by issuing unbacked Tethers with the intention of inflating the price of cryptocurrencies such as Bitcoin (BTC) .
Judge Polk Failla denied iFinex's requests to block the order on the grounds that the company had previously submitted documents "sufficient" to the Commodity Futures Trading Commission and the New York Attorney General. She found the prosecutors' demand for the "undoubtedly important" documents to be well established because they "seem to go to one of the plaintiffs' main allegations."
Previously, in September 2021, Judge Polk Failla dismissed plaintiffs' claims against iFinex under the Racketeer Influenced and Corrupt Organizations Act and charges related to racketeering or the use of racketeering proceeds for investments.
In February 2021, in another case settled with the New York Attorney General's Office, iFinex agreed to pay $18.5 million in New York damages and submit to regular reporting of its reserves in addition to ceasing service to customers in the state. The settlement follows a 22-month investigation into whether the company tried to cover its losses — reported to be worth $850 million — by misrepresenting the extent to which its USDT reserves were backed by unsecured collateral.