Tether and Bitfinex Embrace Transparency, Not Opposing FOIL Request

Tether and Bitfinex have decided not to oppose the Freedom of Information Law (FOIL) request initiated by journalists, including Zeke Faux, Shane Shifflett, and Ada Hui, who they claim exhibit “certain behaviors.” The companies contend that Faux’s earlier reports on Tether and Bitfinex went beyond the scope of professional journalism.

In their Nov. 24 announcement, Tether and Bitfinex assert that news organizations such as The Wall Street Journal and Bloomberg have journalists involved in the ongoing FOIL request who have produced “one-sided and inaccurate” reports. In contrast, Tether and Bitfinex aim to establish a higher ethical standard and “lead by example.”

The current FOIL request relates to the settlement between Tether, Bitfinex, and the New York Attorney General (NYAG) in February 2021. Originally reported by CNBC, the settlement involved an $18.5 million fine to settle a two-year legal dispute regarding the alleged mixing of $850 million in client and corporate funds.

As part of the settlement, Tether and Bitfinex agreed to provide quarterly transparency reports to the NYAG for two years. After fulfilling these terms, CoinDesk filed a FOIL request in New York to publicly disclose documents related to Tether’s first-quarter activities under the settlement terms.

The announcement ends with Tether underscoring both firms’ dedication to transparency, stating their actions demonstrate their commitment to being industry leaders in openness. Their decision not to challenge the FOIL request shows their dedication to ethical business practices and a transparent reputation, countering previous allegations that Tether lied about its virtual currency being fully backed by U.S. dollars at all times.

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