Tether Releases Reserve Materials and Says Depeg Timing “Suspicious”

Tether earlier this year completed its reporting obligations to the New York Attorney General’s Office under the terms of its 2021 settlement. The terms required Tether to report on its reserves quarterly for two years, a term that Tether successfully fulfilled.

Following the 2021 settlement, CoinDesk, under New York’s Freedom of Information Law, sought public disclosure of materials related to Tether's first quarterly reports. The New York Attorney General's office has made these documents available to CoinDesk yesterday after Tether dropped its opposition.

The disclosed documents include statements from Tether's banks showing the existence of Tether's reserves, confirmed by third-party attestations. It said that these documents match earlier official reports but are now outdated. The company emphasized that it has cut commercial paper reserves to zero and reduced its secured loans portfolio since the original reports.

Tether Called de-peg timing suspicious

Tether also highlighted that its USDT stablecoin briefly lost its $1.00 peg. It said that it is “suspicious” this occurred on the day that CoinDesk obtained the documents.

However, CoinDesk has not published a piece based on those documents, and Tether believes that CoinDesk is still reviewing the data. As such, Tether’s suspicions are implicitly aimed at other market participants. The company said that it is monitoring the market for signs of manipulation and panic-spreading.

The company said that it cannot rely on balanced coverage from CoinDesk and claimed that the news site has misrepresented USDT’s market position in the past. It also urged the site not to disclose customer names or put anyone at risk.