{"id":200087,"date":"2023-11-24T22:35:41","date_gmt":"2023-11-24T17:05:41","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=200087"},"modified":"2023-11-24T22:35:41","modified_gmt":"2023-11-24T17:05:41","slug":"foil-request-accepted-tether-and-bitfinex-embrace-openness-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/foil-request-accepted-tether-and-bitfinex-embrace-openness-crypto-news\/","title":{"rendered":"FOIL Request Accepted, Tether, and Bitfinex Embrace Openness – Crypto News"},"content":{"rendered":"

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In a notable shift toward transparency, cryptocurrency giants <\/span>Tether and Bitfinex<\/span><\/a> have withdrawn their opposition to the Freedom of Information Law (FOIL) request. This decision, pivoting from their previous stance, potentially marks a new chapter in the cryptocurrency regulatory narrative.<\/span><\/p>\n

FOIL Uncovers Tether\u2019s Extensive Banking Relationships<\/b><\/h2>\n

Central to this development, the <\/span>FOIL request sought<\/span><\/a> to illuminate the banking relationships and reserve structures underpinning Tether\u2019s USDT token, the largest stablecoin by market capitalization. Despite initial resistance, the New York Supreme Court, led by Justice Laurence Love, dismissed Tether and Bitfinex\u2019s petition to block this inquiry.<\/span><\/p>\n

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Subsequently, documents obtained have laid bare Tether\u2019s financial dealings. The stablecoin issuer\u2019s funds are dispersed across various institutions: four banks, two investment management firms, two gold depositories, a gold broker, and its affiliate, Bitfinex. This revelation is crucial, as it offers a clearer picture of the financial ecosystem supporting the USDT.<\/span><\/p>\n

This FOIL request is not an isolated event but a continuation of a broader legal narrative involving Tether and Bitfinex. It <\/span>traces back to a settlement<\/span><\/a> with the New York Attorney General (NYAG) in February 2021, concluding a two-year legal dispute. This settlement saw the two companies pay an $18.5 million fine, addressing allegations regarding the mishandling of $850 million in combined client and corporate funds.<\/span><\/p>\n

Further, the disclosed documents indicate Tether\u2019s investments in commercial papers and securities from various entities, including Chinese banks and financial institutions. The extent of reliance on commercial paper, a short-term debt instrument, was previously undisclosed, adding another layer to understanding Tether\u2019s financial stability.<\/span><\/p>\n

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In March 2021, Tether reported holding over $35.5 billion in U.S. dollar equivalents across these institutions, providing a rare glimpse into the reserves backing USDT.<\/span><\/p>\n

USDT\u2019s Backing Questioned, Fines Imposed<\/strong><\/h2>\n

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This development arrives after a series of legal challenges for Tether and Bitfinex. Notably, in 2021, the Commodity Futures Trading Commission (CFTC) imposed a fine exceeding $42 million on the entities, citing that the USDT stablecoin was not fully backed at all times.<\/span><\/p>\n

The decision by Tether and Bitfinex to cease their opposition to the FOIL request can be interpreted as a stride toward greater transparency. This move is significant in the ongoing scrutiny and calls for regulatory clarity in the cryptocurrency market. It highlights a growing trend among crypto entities to adhere to regulatory demands and enhance transparency in their operations.<\/span><\/p>\n

This shift could potentially impact the broader cryptocurrency market and its regulatory landscape. By voluntarily disclosing their financial information, Tether and Bitfinex are setting a precedent for other players in the industry. It indicates a willingness to cooperate with regulatory bodies and an acknowledgment of the need for increased transparency in the cryptocurrency domain.<\/span><\/p>\n

Read Also:<\/b> BlackRock Inc. Spotlights Stablecoin Risks in US Bitcoin ETF Filing<\/span><\/a><\/p>\n

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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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In a notable shift toward transparency, cryptocurrency giants Tether and Bitfinex have withdrawn their opposition to the Freedom of Information Law (FOIL) request. This decision, pivoting from their previous stance, potentially marks a new chapter in the cryptocurrency regulatory narrative. FOIL Uncovers Tether\u2019s Extensive Banking Relationships Central to this development, the FOIL request sought to […]<\/p>\n","protected":false},"author":2,"featured_media":160410,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[192,29,198,194,195,199,196,193,197,200],"class_list":["post-200087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-blockchain-business","tag-business","tag-coins","tag-crypto-business","tag-cryptocurrency-business","tag-fiat","tag-metaverse-business","tag-nft-business","tag-token","tag-token-business"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/200087","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=200087"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/200087\/revisions"}],"predecessor-version":[{"id":200089,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/200087\/revisions\/200089"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/160410"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=200087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=200087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=200087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}