U.S. citizens Matthew Anderson and Shawn Dolika have filed a lawsuit against Tether Holdings Limited, the company responsible for issuing the USD Tether (USDT) stablecoin, for alleged illegal actions.
Specifically, the Tether company has been charged with allegedly “immoral, unethical, oppressive and unscrupulous practices,” according to a document filed in a district court in southern New York on December 11.
In the lawsuit, they say the company “consistently maintained” that the Tether tokens are backed one by one with sufficient reserves in US dollars.
Based on these statements, consumers, including complainants, reasonably believed that each Tether token was equal to one U.S. dollar and was backed by one U.S. dollar in reserves. But these representations were false, ”it is stated in the document.
Likewise, the demand builds on charges laid by the New York State Attorney General’s Office and the Commodity Futures Trading Commission. Both organizations considered Tether to have “distorted the approval of Tether tokens and, in fact, did not keep the same amount of reserves as Tether tokens in circulation.”
Last February, Tether paid a fine of $ 18.5 million for a trial in New York City court. Composition by CriptoNoticias.
The charge mentioned in the lawsuit is a charge brought earlier this year by the New York State attorney general’s office. There Tether was indicated to offer services illegally, Hedge trades and lie about supporting the dollar pegged currency.
On this occasion, the company reached an agreement with the judicial authorities of New York, last February, to pay a fine of 18.5 million dollars and the obligation to present quarterly reports reflecting its financial operations.
Tether says complainants ‘will fail miserably’
Faced with the accusation brought by Anderson and Dolika, the the company issued a brief statement, December 13. They declare that it is a “senseless and imitation trial in search of a considerable payment based on completely unfounded claims”. They also decided that the plaintiffs’ efforts “will fail miserably”.
Shameless money credits, of which this lawsuit is a classic example, will never be worth paying a single Satoshi in a settlement. Bitfinex and Tether will argue aggressively and drop the action in due course, and then pursue their solutions against the parties bringing the lawsuit, ”Tether added.
Trying to appease the critics
The company has been trying to allay, for months, all the doubts that exist about its reserves. Last August, they presented a report reflecting the safeguard of reserves with which the cryptocurrency has.
In the Consolidated Reserves Report (CRR), published by CriptoNoticias claim to have reserves of $ 62.8 billion, approved by Cayman Islands-based accounting firm Moore Cayman.
They said they had $ 6.28 billion in cash and bank deposits, which is 10% of reserves. They also showed that they held $ 1 billion in repurchase notes, or 1.6% of reserves; as well as $ 15.28 billion in US Treasuries, corresponding to 24.3% of reserves. The remaining 49% (30.8 billion USD) is held in commercial paper and certificates of deposit.