Tether and Bitfinex Agree to Comply with FOIL Request Amid Commitment to Data Privacy
Summary:
Cryptocurrency firms Tether and Bitfinex have agreed not to oppose a Freedom of Information Law (FOIL) request lodged by various major news outlets in New York, according to a statement shared with Cointelegraph. Despite their commitment to transparency and information disclosure, the companies stressed that they wouldn't publicly release documentation, citing concerns over business practices and data privacy. The decision comes after high-profile reporters lodged the FOIL request, despite the firms' claims of biased and erroneous reporting from these journalists. Tether and Bitfinex had previously settled with the New York Attorney General's office over a legal dispute related to the alleged commingling of client and company funds.
Cryptocurrency companies Tether and Bitfinex have decided not to resist a Freedom of Information Law (FOIL) request made by various prominent news outlets in New York. According to a statement shared by the USDT stablecoin producer and crypto trading platform with Cointelegraph, both companies are dedicated to disclosing information in a transparent way, stemming from an earlier FOIL request made by Coindesk. The pair have, however, expressed they will not share documents publicly, stating such a move does not align with how they traditionally conduct operations: “Transparency does not equate to providing open access to all our documents.” Tether and Bitfinex have chosen not to contest the FOIL request set forth by reporters Zeke Faux, Shane Shifflett, and Ada Hui, while emphasizing that this decision is made in spite of the “particular conduct” displayed by the aforementioned reporters. The two firms have alleged that Faux's previous coverage of them has “overstepped the bounds of professional journalism". They also alleged that media publications including the Wall Street Journal and Bloomberg, whose journalists are involved in the current FOIL request, have produced “biased and erroneous” reporting.
Both Tether and Bitfinex have underlined their commitment to transparency and openness to dialogue with both journalists and regulatory bodies, provided these parties “follow ethical journalism standards and respect the limits of data privacy”. Additionally, they have advocated for a “careful review of documents” before the public disclosure of any information, while clarifying that their endeavour to maintain transparency does not imply “an unrestrained public unveiling of all documents.”
For more specifics about the FOIL request and the involved information, Cointelegraph has reached out to Tether. The ongoing FOIL request emerged after Tether and Bitfinex made amends with the office of the New York Attorney General (NYAG) in Feb. 2021. Reportedly, the settlement, which included an $18.5 million fine, concluded a two-year legal confrontation related to an alleged mix-up of $850 million in client and company funds. Under the terms of the settlement, for a period of two years, Tether and Bitfinex are required to furnish the NYAG with quarterly transparency reports. Once the term of these obligations concluded, Coindesk lodged a FOIL request for public access to materials relevant to Tether's first quarter report under the settlement agreement. In June 2023, Tether argued that its opposition to the FOIL request was motivated by the desire to shield “confidential client data” from public exposure and to guard against potential misuse of “sensitive business information” by potential malefactors.
Published At
11/24/2023 1:42:05 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.