Tether and Bitfinex, two major players in the world of stablecoins and cryptocurrency exchanges, have recently altered their stance by withdrawing their resistance to a Freedom of Information Law (FOIL) inquiry that was initially filed by numerous news organizations earlier this year.
Well, well, well, what do we have here? It seems like Tether and Bitfinex have decided to change their tune and embrace transparency by withdrawing their opposition to a FOIL inquiry. Color me surprised! These two giants in the world of stablecoins and cryptocurrency exchanges have been under constant scrutiny over the past year or so, with many critics accusing them of shady dealings and lack of transparency.
“We have nothing to hide”
In a statement issued on November 24th, the companies indicated that their choice is based on their firm dedication to openness and their strong conviction that there are no secrets to conceal.
It has contacted Tether and Bitfinex to gather further information regarding the specific records belonging to the cryptocurrency exchange and stablecoin issuer that could be obtained if the FOIL request is approved.
Their statement emphasized that while transparency is vital, it should not be misinterpreted as an indiscriminate disclosure of every document they possess. They highlighted that this approach contradicts established norms in the business world.
Tether and Bitfinex publicly rebuke journalists
The companies later summoned several journalists, namely Zeke Faux, Ada Hui, and Shane Shifflet, to file a FOIL request regarding specific actions they considered worrisome. They expressed their unease concerning the work of Zeke Faux, stating that it occasionally surpassed the limits of professional journalism. Nevertheless, no concrete instances were cited by the companies to substantiate this accusation.
Furthermore, the declaration criticizes the Wall Street Journal and Bloomberg, accusing them of presenting biased and erroneous information.
The statement carried on, expressing the aim to establish an elevated ethical benchmark while actively guiding others through demonstration.
Notwithstanding, it is further stated that both corporations are willing to collaborate with journalists who they consider to comply with ethical reporting guidelines and uphold the boundaries of data privacy.
The statement asserts that responsible evaluation and management of documents hold utmost importance before making them available to the public. It emphasizes that transparency should not be mistaken for unrestricted disclosure of all records.
History repeats itself
There have been previous instances this year where a similar choice was made, and now we see Tether and Bitfinex making headlines with their decision not to contest the FOIL request.
During June, Tether made a significant change in its approach by no longer resisting a FOIL request from media company Coindesk. The request sought to uncover information about the specific conditions of a settlement reached in 2021 with the New York Attorney General’s Office.
As a result of accusations made by the state, businesses were accused of engaging in deceptive practices to conceal roughly $850 million worth of mixed funds by maneuvering hundreds of millions of dollars. To resolve the matter, Tether was required to pay a substantial fine of $18.5 million.
In a statement issued previously, the company expressed its unwavering assurance in the precision of its financial data, emphasizing that Tether maintains complete transparency without any hidden information.
Ifinex Inc. is the parent company of both Tether and Bitfinex.
Frequently Asked Questions:
1. Which FOIL request did Tether and Bitfinex drop their opposition to?
News organizations frequently utilize the Freedom of Information Law (FOIL) to formally request legal access to specific documents attributed to Bitfinex, a cryptocurrency exchange, and Tether, a stablecoin issuer.
2. What prompted Tether and Bitfinex to retract their resistance against the FOIL request?
Both companies issued a joint statement affirming their dedication to transparency, asserting that they have no hidden motives. They have chosen this approach based on their strong belief in being open and honest, while also emphasizing that transparency does not mean disclosing every single document.
3. If the FOIL request is approved, what kind of information will be made available?
The details about the specific records accessible through the FOIL request have yet to be revealed. In pursuit of a better understanding of the request’s nature, Cryptonews.com has contacted Tether and Bitfinex for further information.
4. Tether and Bitfinex went ahead and specifically named journalists, but what was the reason behind singling them out and how are these journalists connected?
Zeke Faux, Ada Hui, and Shane Shifflet, all journalists, were specifically mentioned in the official statement regarding the FOIL request. The companies involved conveyed their apprehensions regarding certain actions, insinuating that Faux occasionally surpasses the realm of professional journalism. Nevertheless, no concrete instances were presented to substantiate this assertion.
5. What are Tether and Bitfinex’s perspectives on the principles of ethical reporting and safeguarding personal information?
Tether and Bitfinex have expressed their willingness to collaborate with journalists who uphold the principles of ethical reporting and value the boundaries of data privacy. They have underlined the significance of conducting a responsible assessment and management of documents before any public unveiling. According to them, transparency should not be mistaken for a complete dissemination of all documents without any limitations.
6. Has Tether ever encountered a previous instance where they had to deal with a FOIL request that bore a resemblance to the current situation?
In June of the same year, Tether revised its stance and no longer resisted a FOIL request from Coindesk, a media company that sought information regarding the specificities of a settlement reached with the New York Attorney General’s Office in 2021. This change in approach came after accusations were made against Tether, claiming that they engaged in the concealment of approximately $850 million through fund transfers. Consequently, Tether agreed to pay an $18.5 million fine as part of the resolved settlement.
7. The proprietors of Tether and Bitfinex, who do they belong to?
Ifinex Inc. is the parent company of both Tether and Bitfinex.
Credit: https://cdn.corporatefinanceinstitute.com/assets/tether.jpeg
