Tether and Bitfinex agree to drop opposition to FOIL request in the crypto business world.
Tether, Bitfinex agree to drop opposition to FOIL request

Tether and Bitfinex Drop Opposition to FOIL Request

Tether and Bitfinex have released a statement that they will not be appealing against the Freedom of Information (FOIL) request from Coindesk and other crypto publications, despite “certain behaviors” by the writers. The USDT stablecoin issuer and cryptocurrency exchange is committed to transparently sharing information.

The FOIL request was lodged in New York by high-profile news outlets, including those covering the crypto business, such as Coindesk, Crypto Review, Crypto CNBC, Crypto Publications, and other crypto outlets. Business Insider crypto and other best crypto outlets were also involved.

However, the companies have indicated that they will not be publicly releasing documentation, as this is not in line with their business practices.

The Company’s Stance on Transparency and Media Outlets

Tether and Bitfinex have taken issue with Faux’s past reports on their companies, claiming that they have “extended beyond the boundaries of professional journalism”. They have also alleged that media outlets such as the Wall Street Journal and Bloomberg, who are involved in the ongoing FOIL request, have been “one-sided and inaccurate”.

The two crypto businesses have declared that they are committed to transparency and open to engaging with journalists and regulatory authorities, provided that these parties “adhere to ethical reporting standards and respect data privacy boundaries”.

Tether and Bitfinex have also urged for “responsible document review” before any information is released to the public, stressing that their efforts to be transparent do not “equate to unrestricted public disclosure of all documents”.

Cointelegraph has contacted Tether to gain more insight into the FOIL request and the data it pertains to.

Crypto Outlets and Tether’s FOIL Request

In February 2021, Tether and Bitfinex reached an agreement with the New York attorney general’s (NYAG) office, involving a $18.5 million fine to settle a two-year long legal dispute regarding the alleged comingling of $850 million of client and corporate funds. As part of the settlement, Tether and Bitfinex were required to submit quarterly transparency reports to the NYAG for two years.

Following the end of these obligations, Coindesk, one of the leading crypto outlets, submitted a FOIL request in New York, seeking public disclosure of materials relating to Tether’s first quarterly report that it had submitted. In June 2023, Tether claimed that it had opposed the FOIL request to protect confidential customer data and to prevent the use of sensitive commercial information which it fears could be exploited by malicious actors.

Categorized in:

Tagged in: