Tether & Bitfinex Cease Opposition to NY Freedom of Information Law Request

• Tether and Bitfinex Respond to FOIL Request
• Previous Court Losses
• Interactions with CoinDesk
• Continued Engagement with Journalists and Regulators
• USDT: The World's Largest Stablecoin

Tether and Bitfinex Respond to FOIL Request

Stablecoin Tether$1.000 -0.12% and its affiliate company Bitfinex have consented to no longer resist a Freedom of Information Law request (FOIL) put forward by a selection of journalists. This decision is seen as part of their ongoing commitment to transparency, as expressed in a recent statement.

However, the firms clarified that their transparency pledge does not equate to an unrestricted release of all company documents, emphasizing that such an approach is inconsistent with regular business operations.

Previous Court Losses

Tether previously made a comparable statement following two court losses in attempts to obstruct a FOIL request filed by CoinDesk in June 2021. The request related to documents produced during the New York Attorney General's investigation into claims that Tether's USDT, a stablecoin pegged to the U.S. dollar, was inadequately backed by reserves between mid-2019 and early 2021. Tether settled these charges with the company at the end of this period.

Interactions with CoinDesk

In the FOIL request, CoinDesk specifically requested documents regarding Tether's reserves. Tether sought to prevent these documents from being released by petitioning the New York Supreme Court. CoinDesk participated in the case arguing that the documents should be revealed in the public interest. Tether's opposition to CoinDesk's involvement was rejected by a New York judge.

Continued Engagement with Journalists and Regulators

In a recent statement, both companies communicated that they will not challenge the FOIL request by some journalists but maintain the willingness to engage constructively with journalists and regulatory authorities who adhere to ethical reporting standards and respect data privacy limitations.

USDT: The World's Largest Stablecoin

USDT, Tether's stablecoin, is the largest of its kind in the world, with an estimated value of $88.5 billion. It plays a critical role in the cryptocurrency ecosystem, facilitating financial transactions globally.

Reports of USDT's involvement in various illicit activities have been highlighted, including pig butchering scams. Over the past week, Tether and the U.S. Department of Justice have disclosed the freezing of funds tied to such fraudulent activities.

Edited by Jonathan Stoker