Prosecutors involved in the LeboBTC lawsuit are pushing for Tether’s Chief Technical Officer (CTO), Paolo Ardoino, to be deposed on Wednesday, rather than in early October. They argue that Ardoino is readily available and should testify based on his personal knowledge. The prosecution believes that postponing the deposition until October would not give them sufficient time to investigate any statements Ardoino may make during the deposition, as the court has set a discovery cutoff point for October 23rd.
The LeboBTC lawsuit, filed in 2019, accuses Bitfinex and Tether of defrauding investors, manipulating markets, and concealing illicit proceeds. The plaintiffs claim that Tether minted its USDT stablecoin to manipulate the price of Bitcoin, citing a Bloomberg study.
Tether recently celebrated a court ruling that denied a prosecutor’s request to amend the lawsuit against the company. Two individuals involved in hacking Tether’s sister company, Bitfinex, pleaded guilty to money laundering in August.
Many industry participants have criticized Tether for its lack of transparency. While the company provides attestations summarizing the assets backing its USDT coin, some argue that this report does not provide a complete picture of the company’s financial health. Ardoino has defended Tether’s stance, stating that the company is not required to make public disclosures as it is not a public company.
Tether plays a significant role in the crypto market, with around $80 billion of the total market cap. It serves as a bridge between traditional and decentralized finance, allowing investors to easily access cryptocurrencies. For every USDT minted, Tether holds $1 in low-yield government bonds and cash equivalents.
In conclusion, prosecutors in the LeboBTC lawsuit are seeking to depose Tether’s CTO, Paolo Ardoino, earlier than scheduled. The lawsuit accuses Tether and Bitfinex of fraudulent activities and manipulating the price of Bitcoin. Tether recently faced a court ruling that denied a prosecutor’s request to amend the lawsuit. The lack of transparency in Tether’s disclosures has been a long-standing concern among industry participants. Despite criticism, Tether remains a crucial player in the crypto market, providing a means for investors to bridge the gap between traditional and decentralized finance.
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