After receiving all the papers pertaining to Tether’s (USDT) operations in 2020–2021 via the New York Attorney General’s Office on June 15, 2023, Tether eventually decided to discontinue its defence of the FOIL requests made by crypto media sites. The Tether team addressed some recent claims and provided an explanation of its reasoning for this audacious action in a blog post.
Tether finally discloses data about its operations in previous bull run to media
Tether Limited revealed that the New York Attorney General’s Office (NYAG) disclosed papers concerning its practises to CoinDesk and other parties today, on June 16, 2023. After Tether abandoned its practise of appealing against media inquiries, this was made available.
Due to a number of considerations, Tether chose not to polish the appeal. First, the sensitivity of the data on the events in 2020–2021 decreased. Then, as the biggest stablecoin, it made the decision to reiterate its dedication to the highest level of operational openness.
Tether denies that it was “forced” to reveal the data, even though it did not support the practise of sharing data with journalists:
We had the option of pursuing the appeal, but because of our continued and clear commitment to openness, we must choose transparency over further time-consuming and fruitless American litigation that diverts attention from the genuine problems confronting our community.
In order to protect its clients from any dangers, Tether does not intend to make the aforementioned papers public. The team behind it also emphasised that certain data—such as the structure of USDT backing—might be outdated by 2022–2023 due to changes in that period.
Tether on being exposed to Chinese commercial paper: “We did not lose a dime”
Tether, for instance, increased the conservatism of the asset mix underpinning USDT. It decreased the proportion of commercial paper as value moved to assets in the US Treasury.
It also addressed the charge of owning shares in bankrupt Chinese enterprises. However, it only included the equities of “large and well known issuers in the international Commercial paper market.” The Tether team acknowledged that it formerly held Chinese commercial paper in its portfolio.
Tether exclusively had A1-rated equities prior to the stake of CP falling to zero, according to the statement. It didn’t lose a “dime” on keeping stocks because of this, despite the prolonged recession.
