Tether (USDT), depreciated today after the New York Association of Governments (NYAG) released one of its quarterly financial records.
Today, the digital currency ecosystem is agitated due to the depegging of the largest stablecoin in the industry, Tether (USDT). The de-pegging, which has caused the stablecoin to plummet to $0.9991 at the time of writing, has been attributed to the loan drama on the DeFi platform Curve. Tether Holdings Ltd has issued a statement in which it reveals new information regarding the entire incident.
Tether’s Primary Concern
According to the company, the Office of the New York Attorney General (NYAG) entrusted Coindesk with materials related to the first of its quarterly reports shortly after Tether and NYAG reached a settlement agreement in 2021.
The documents were released due to its decision to abandon its lawsuit against Coindesk, according to Tether. The stablecoin issuer explained that it instituted opposition proceedings in the first place “to prevent the use of sensitive commercial information that could potentially be exploited by malicious actors.”
Tether disclosed that the documents shared with Coindesk include statements from Tether’s institutions demonstrating the whole existence of the company’s reserves, as well as how the company has approached its asset management obligations, short-term investments, and diversification.
In what appears to be a proactive move, Tether stated that there had been significant backlash regarding the content of the documents and that it wishes to note that the financial transactions do not reflect the company’s current circumstances. The stablecoin issuer requests that Coindesk not disclose any past or present information about its customers, despite not having confidence in the news outlet’s commitment to impartial reporting.
Considering the Alameda Research Saga
Coindesk has played a crucial role in the crypto ecosystem regarding disclosing the most concealed financial information on the industry’s largest companies.
In November of last year, the news outlet reported on the financial and transactional irregularities of Alameda Research, the trading firm founded by Sam Bankman-Fried, co-founder of FTX. The revelations at the time resulted in the demise of FTX, and a similar dread appears to be brewing within the industry regarding Tether.
Although Tether has been controversial due to widespread FUD, the company has survived most of its assaults. The question is whether it will stay the details that the released documents may reveal. If the parties are contentious, the FUD may be just beginning.
