Stablecoin issuer Tether and Bitfinex have decided to withdraw their opposition to a Freedom of Information Law (FOIL) request initiated by a group of journalists, including Zeke Faux from Bloomberg Businessweek, renowned for his book “Number Goes Up.”
In a joint statement, the companies emphasized that relinquishing their opposition is a demonstration of their commitment to transparency. However, they clarified that this move does not signify a comprehensive release of all their documents. The statement underlined, “It’s important to note that transparency does not imply an unrestricted disclosure of all our documents. Such an approach deviates from established business practices.”
This decision mirrors a previous announcement by Tether, which similarly abandoned its resistance after facing legal setbacks in attempting to block a June 2021 FOIL request filed by CoinDesk. The earlier request focused on documents generated during the New York Attorney General’s investigation into allegations that Tether’s USDT, a stablecoin pegged to the U.S. dollar, lacked sufficient reserves from mid-2019 to early 2021. The case concluded with a settlement between Tether and the Attorney General.
In the FOIL request at hand, CoinDesk specifically sought documents related to Tether’s reserves. Tether had previously sought court intervention to prevent the release of these documents, with CoinDesk joining the legal proceedings to advocate for public interest disclosure. Tether opposed CoinDesk’s involvement, but a New York judge dismissed their objection.
In their recent statement, Tether and Bitfinex announced their decision not to appeal the FOIL request made by the group of journalists. However, they expressed a willingness to engage constructively with journalists and regulatory authorities who adhere to ethical reporting standards and respect data privacy boundaries.”
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