In legal proceedings related to a market manipulation case dating back to 2019, Judge Katherine Polk Failla, a judge in the U.S. District Court for the Southern District of New York, ordered Attachedthe parent company to provide financial records for its USDT stablecoin.
The court case stems from a lawsuit filed by a group of investors against iFinex, the entity behind Tether and crypto exchange Bitfinex. The plaintiffs claim that the company issued unsecured USDT in an attempt to raise the prices of various cryptocurrencies, and thereby manipulated the market.
The New York judge ruled to allow plaintiffs’ production requests (RFPs) that require iFinex to publish “all ledgers, balance sheets, income statements, cash flow statements, and profit and loss statements,” according to the available court documents.
In her order, the judge said that “the Court finds that the RFPs relating to the plaintiffs’ financial records are not overbroad, especially since the defendants have had the opportunity to produce samples of the RFPs relating to the financial records, but did not do so despite the plaintiffs’ agreement to such a proposal”.
“Plaintiffs make it clear why they need this information: to assess USDT support with US dollars and to enable a forensic accountant to assess USDT reserve,” the judge said.
In response to the order, New York law firm Debevoise & Plimpton, which represents iFinex in the case, said the plaintiffs’ claims demonstrate “their inability to actively pursue their case, as well as their reluctance to adapt their manifestly too broad demands”. documents relevant to their claims.
With this in mind, the defendant’s law firm asked the court to dismiss the plaintiffs’ request which it considers “unduly burdensome on its face, given that Tether is the issuer of a stablecoin and Bitfinex is a cryptocurrency exchange”.