Tether responds to account deactivation controversy, raises compliance checks

Tether Responds to Account Terminations

Tether, the firm responsible for the popular stablecoin Tether (USDT), has responded to worries regarding its operational choices.

According to documents released by the New York Attorney General (NYAG), it appears that Tether deactivated approximately 29 accounts belonging to notable cryptocurrency players in 2021 for various reasons.

Although the motivations for the account terminations were not revealed, Tether replied by saying that it is unwilling to make any remarks about specific associations.

Among the accounts that have been shut down were MoonPay, BlockFi, CMS Holdings, and Galois Capital.

Even though the NYAG investigation finished in February 2021, it has recently been revealed that certain documents in the investigation have been extended until June of that year. User codes within these documents have already been obscured.

The New York Attorney General (NYAG) collected these documents while they were looking into Tether and Bitfinex concerning the misappropriation of $850 million in funds. During this investigation, iFinex – which owns both entities – requested an additional 30 days to provide the essential financial documents prior to the date that had been previously set.

Tether Responds to Reports of Involvement in Chinese Securities

Tether, the issuer of USDT, has responded to reports of its involvement in Chinese securities.

Ultimately, the parties involved arrived at an agreement whereby Tether consented to paying a fine of $18.5 million and discontinue trading operations in New York. Subsequently, media organizations and Coinbase asked the NYAG to make Tether’s initial quarterly report available to the public under the Freedom of Information Act. Tether, however, opposed this request, citing the necessity of protecting the confidential information of its customers from being taken advantage of by malicious individuals.

Despite Tether’s protest, the NYAG permitted media outlets to view the documents, which showed that many firm accounts had been disabled.

Magazine: The Dangers of Unstablecoins: Depegging, Bank Runs, and More.

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