CoinDesk has joined a lawsuit between the New York Attorney General’s office (NYAG) and Tether and its parent firm as a part of the news entity’s push to expose the reserves backing $78.4B of stablecoins.
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Tether and iFinex, owners of Tether and crypto exchange Bitfinex, petitioned the New York State Supreme Court in August to prevent the NYAG from giving CoinDesk documents detailing the reserves.
CoinDesk becomes a party to the case since it has a stake in the legal outcome and the publication is stating that the investing public has a stake too.
In a memorandum, CoinDesk stated that the public interest in disclosure of the requested information outweighs any private interest.
In June 2021, CoinDesk filed a Freedom of Information Law (FOIL) request with NYAG requesting for documents obtained during a probe of Tether and Bitfinex that was earlier settled that year for $18.5M.
The NYAG’s FOIL officer first rejected CoinDesk’s FOIL request. Later, the appeals officer reversed their decision after an appeal by the news organization.