Tether will not be able to prevent the publication of data on the composition of USDT reserves

The U.S. Supreme Court has refused to grant a USDT issuer’s petition to stop CoinDesk from publishing details of the stablecoin’s reserves.

The petition that the Tether team filed with the New York State Supreme Court asking for permission to block viewing of documents detailing the composition of Tether’s reserves over the past few years was rejected.

“The New York Supreme Court rejected Tether’s petition to stop the publication of documents detailing the composition of Tether’s reserves over the past few years,” the decision reads.

Recall that in February, lawyers representing the issuer of the stablecoin Tether and its parent company iFinex filed a lawsuit with the New York Attorney General’s Office (NYAG) against the CoinDesk information resource in connection with the publication of Tether reserves.

“The records in question include the heavily guarded, non-public internal records of Bitfinex and Tether that were developed at significant cost and could not be acquired by its competitors except through this FOIL request,” the statement said.

Probably, the decision of the US Supreme Court is connected with the suddenly increased risks for investors and the financial system itself from the stablecoin market and the reputation of Tether. According to the latest USDT stablecoin issuer certification, Tether’s consolidated assets exceeded its consolidated liabilities by $140 million in February 2022. The issuer posted a report on the results of the last certification, where it admitted that in September-December it reduced its reserves in securities by more than one-fifth. The report states that Tether’s reserves fell from $30.5 billion to $24.2 billion.
Recall that in 2021, the US Commodity Futures Trading Commission (CFTC) fined Tether and Bitfinex a total of $42.5 million for statements that mislead investors and illegal transactions with US citizens.