Tether and Bitfinex Settle Dispute, Will Share Information Under FOIL Request – Here’s What You Need to Know

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By BitcoinWiki News

Key Takeaways:

– Tether and Bitfinex settle FOIL dispute
– Tether emphasizes move towards greater transparency
– Commitment to transparency does not mean complete release of documents
– Wholesale release of documents would not align with standard business practices
– Tether faced FOIL request in June 2021
– Tether lost court case regarding release of documents related to reserves
– Tether and Bitfinex willing to engage with journalists and regulatory authorities
– Concerns raised about use of USDT in illicit activities
– USDT involved in scams highlighted in “Number Goes Up” book
– Controversy surrounding backing of Tether’s USDT stablecoin
– Questions about extent to which USDT is actually backed by reserves and lack of transparent audit or regulatory oversight

Tether and Bitfinex have settled their dispute regarding a Freedom of Information Law (FOIL) request, showing a willingness to share information within certain boundaries. This is not the first time Tether has faced a FOIL request, as CoinDesk filed a similar request in June 2021. Tether’s USDT stablecoin has come under scrutiny for its use in illicit activities and questions surrounding its backing by reserves. While Tether claims each USDT token is backed on a one-to-one basis by U.S. dollars held in reserve, the lack of a transparent audit or regulatory oversight has led to skepticism and accusations of insufficient reserves.

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