Cryptocurrency

Is USDT coin safe? New York court orders Tether to disclose USDT security

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Is USDT coin safe? New York County Court has ordered Tether to disclose the security of the stablecoins USDT and prove the assets attachment to the U.S. dollar. This is reported in the lawsuit.

According to the document, Tether is required to provide the company with financial data, profit and loss statements, cash flow statements, and so on. However, the timeline under which Tether should provide statements is not specified.

The lawsuit is part of a legal battle between investors and Tether’s parent company, iFinex. The plaintiffs believe that Tether manipulated the cryptocurrency market by issuing unsecured USDT with the intention of artificially inflating cryptocurrency prices.

In October 2021, analysts at Hindenburg Research offered $1 million to those who know for sure whether Tether has reserves to back the USDT staple. According to Hindenburg Research, Tether is not telling the whole truth, and the available information is not transparent. What is collateral in crypto USDT? Experts note that most of the collateral of USDT consists of commercial paper, but at the same time, no major trading firm has ever seen assets owned by Tether.

In late May, the media revealed that an undisclosed percentage of Tether reserves were held at Capital Union, a boutique bank in the Bahamas. Capital Union Bank was founded nine years ago and had $1 billion in assets as of 2020. but Tether has confirmed ties to another Bahamian bank, Deltec, whose chief executive told Bloomberg in 2021 that the financial institution only owns 25% of Tether’s reserves.

We previously reported that OpenSea would add support for the Arbitrum sidechain.

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