Tether, the popular stablecoin, has found itself at the center of attention once again. This time, it involves the disclosure of documents by the New York Attorney General’s Office to media outlet CoinDesk.
The timing of this revelation is raising eyebrows, as it coincides with a targeted attack on Tether via both decentralized finance (DeFi) platforms and centralized exchanges (CEX).
In response to the documents being handed over, Tether has called upon CoinDesk to exercise discretion and refrain from revealing any sensitive information about its past and current customers.
Tether claims that the release of such information could potentially put individuals in the community at risk, both physically and digitally.
Tether’s Compliance with Settlement Obligations
Earlier this year, Tether fulfilled its reporting obligations to the New York Attorney General’s Office as part of a settlement agreement. This agreement required the company to disclose information about its reserves on a quarterly basis for two years.
Tether asserts that it diligently adhered to these reporting requirements and that there were no indications of incomplete disclosures or insufficient reserves.
CoinDesk had previously requested the public disclosure of materials related to Tether’s quarterly reports under New York’s Freedom of Information Law.
Today, the New York Attorney General’s Office handed over the requested documents to CoinDesk, as the company chose to drop its opposition to their release.
Among the disclosed documents are statements from its banks confirming the existence of their reserves. The company emphasizes that these statements, coupled with their independent third-party assurance attestations, debunk any doubts about the solidity of their backing.
The materials provided, however, are outdated and do not accurately reflect the present state of its reserves, which have undergone significant transformations in recent months.
Tether acknowledges the suspicious timing of the attack on USD₮, its native cryptocurrency, which coincided with the documents’ release. Nevertheless, the company expresses confidence in the accuracy of its financial figures and vows to remain vigilant in protecting customer data.
While the company does not anticipate fair coverage from CoinDesk, which they believe has shown bias in the past, they implore the media outlet to prioritize community safety by refraining from publicizing any customer names.
As CoinDesk likely reviews the disclosed information, the company closely monitors the USD₮ markets for any signs of manipulation intended to spread panic if CoinDesk decides to publish details.
However, the company stands firm in its commitment to transparency. They believe that the published information if carefully interpreted, will unequivocally demonstrate the legitimacy of its business and the existence of its reserves.
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