In a recent development, Tether and Bitfinex have mutually decided to withdraw their initial opposition to a Freedom of Information Law (FOIL) request filed in New York by several prominent news outlets. The USDT stablecoin issuer and cryptocurrency exchange shared a statement with a news outlet, expressing their commitment to transparently sharing information in response to a FOIL request initiated by CoinDesk earlier this year.
However, Tether and Bitfinex clarified that while they are dedicated to transparency, it does not mean a wholesale release of all their documents, citing misalignment with their business practices. The companies will not challenge the FOIL request presented by journalists, including Zeke Faux, Shane Shifflett, and Ada Hui, whom they accuse of displaying behavior that they don’t find acceptable.
Alleging that Faux’s past reports exceeded the boundaries of professional journalism and that media outlets like The Wall Street Journal and Bloomberg have been one-sided and inaccurate, Tether and Bitfinex emphasized their commitment to transparency. They expressed openness to engaging with journalists and regulatory authorities, provided that they adhere to ethical reporting standards and respect data privacy boundaries.
The companies also advocated for a responsible document review before any public release of information, clarifying that their efforts toward transparency do not equate to unrestricted public disclosure of all documents.
The ongoing FOIL request stems from Tether and Bitfinex’s settlement with the New York Attorney General (NYAG) in February 2021, involving an $18.5 million fine to resolve a two-year legal dispute regarding the alleged misuse of $850 million of client and corporate funds. As part of the settlement, Tether and Bitfinex agreed to submit quarterly transparency reports to the NYAG for two years.
Following the conclusion of these obligations, CoinDesk submitted a FOIL request in New York seeking public disclosure of materials related to Tether’s first quarter under the settlement agreement. In June 2023, Tether stated that it initially opposed the FOIL request to prevent the public dissemination of confidential customer data and sensitive commercial information, which it feared could be exploited by malicious actors.
