Tether: The Bitcoin Inflation Probe Takes Another Turn; can USDT withstand the pressure

Tether [USDT] seems to have gone back to hitting the rocks. In a new development, a court in New York ordered Tether to provide its financial records to prove its innocence in a case that saw it cost crypto traders over $1 trillion.

In 2019, several crypto traders banded together and sued Tether and Bitfinex, its partner company, alleging market manipulation manipulation. The company was accused of inflating Bitcoin [BTC] price to your own advantage.

“Do not do it.” No, I will

Previously, Tether had hoped to stop the court from making such a ruling. In its defense, the company said the court should reject the plaintiffs’ request because it was far “overboard” and unrelated to their claims.

However, it seemed Hon. Katherine Failla was not in favor of the defense negotiations and gave the go-ahead. The ruling meant that Tether would have to give up all its accounts across exchanges, including Poloniex, Bittrex and Bitfinex. The judge said,

“The court agrees that these problems should have been resolved at an earlier time. But it will not fully expose the plaintiffs where both sides knew there was a disagreement. “

The good condition remains

From USDT’s side, the update did not appear to affect the network negatively. According to Santiment, they only address 24-hour actives declined slightly from the figure on 19 September. Addresses only dropped from 59,300 to 56,900 at press time.

Source: Sentiment

In terms of market value, USDT remained relatively stable, while no significant dumping was seen. Actually, it dominance above Circle [USDC] appeared to have increased further. With USDT’s market cap at $67.92 billion, the difference was over $17 billion.

Furthermore, while measuring the exchange network flow, CryptoQuant revealed an increase of 1.75% in the last 24 hours. The exchange output was 695.952 million, while the inflow was 684.332. With this difference of 24.379 million, it can be agreed that more investors are increasingly choosing to remain in stablecoins.

Source: CryptoQuant

Not only has USDT proven its strength in these areas, but it has also increased in circulation. Sentiment data showed that the stablecoin’s one-day circulation increased enormously from 19 September. At the time of writing, the circulation was about 1.1 billion.

Source: Sentiment

However, there has been no public response from the Tether team yet regarding the matter. More so, it was unlikely that the defense team would challenge the verdict again since it had presented a rebuttal earlier.