Tether's Response: Reinforcing Compliance Amidst Controversy

Tether's Response: Reinforcing Compliance Amidst Controversy
Tether, the company responsible for the popular stablecoin Tether (USDT), has responded to concerns raised about its operational decisions.

According to documents released by the New York Attorney General (NYAG), Tether reportedly deactivated approximately 29 accounts belonging to prominent figures in the cryptocurrency industry in 2021. The reasons for these account terminations varied among individuals.

Tether chose not to disclose the specific reasons for the account terminations, stating that it does not comment on individual relationships. However, the company emphasized that all individuals had undergone thorough compliance checks during the onboarding process and were subject to ongoing monitoring, in accordance with Tether's compliance policies.

Among the deactivated accounts were those of MoonPay, BlockFi, CMS Holdings, and Galois Capital.

Although the NYAG's investigation concluded in February 2021, it has been revealed that certain documents related to the investigation extend until around June of the same year. User codes within these documents have been redacted.

The NYAG obtained these documents while investigating Tether and its sister company Bitfinex for allegedly misappropriating $850 million. During the investigation, iFinex, the parent company of both entities, requested a 30-day extension to provide critical financial documents before the previously scheduled deadline.

As part of a settlement, Tether agreed to pay a penalty of $18.5 million and cease trading activities in New York. Following this, media outlets and Coinbase requested the NYAG to disclose Tether's initial quarterly report under the Freedom of Information Act. However, Tether objected to this request, citing the need to protect its customers' confidential information from potential exploitation by malicious actors.

Despite Tether's objection, the NYAG granted media outlets access to the documents, leading to the revelation of multiple account deactivations by the company.

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