Tether, Bitfinex Now Agree Not To Appeal The Freedom Of Information Law

• Tether, Bitfinex have agreed to drop opposition to Freedom of Information Law (FOIL) request by several media outlets.
• Tether and Bitfinex say the decision not to appeal the FOIL was made in the interests of transparency.

Tether and Bitfinex have jointly agreed to drop initial opposition to a Freedom of Information Law (FOIL) request lodged in New York by a number of high-profile news publications.

A statement from the USDT stablecoin issuer and cryptocurrency exchange notes that it is committed to transparently sharing information following a FOIL request from CoinDesk earlier this year.

The companies also indicated that they would not be openly releasing documentation, claiming that the approach is not in line with its business practices:

“It’s essential to clarify that transparency does not mean a wholesale release of all our documents.”

Tether and Bitfinex will not appeal against the FOIL request put forward by journalists, including Zeke Faux, Shane Shifflett and Ada Hui, whom they accuse of exhibiting “certain behaviors.”

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The companies claim that Faux’s past reports on Tether and Bitfinex have “extended beyond the boundaries of professional journalism.” They also claim that media outlets, including The Wall Street Journal and Bloomberg — whose journalists are participating in the ongoing FOIL request — have been “one-sided and inaccurate.”

The statement stresses that both companies are committed to transparency and remain open to engagement with journalists and regulatory authorities, given that they “adhere to ethical reporting standards and respect data privacy boundaries.”

Tether and Bitfinex also called for “responsible document review” before any public release of information, stating that their efforts to be transparent do not “equate to unrestricted public disclosure of all documents.”

The ongoing FOIL request relates to Tether and Bitfinex reaching an agreement with the New York Attorney General (NYAG) in February 2021. As initially reported by CNBC, the agreement involved paying an $18.5 million fine to settle a two-year-long legal dispute regarding the alleged commingling of $850 million of client and corporate funds. 

Part of the settlement required Tether and Bitfinex to submit quarterly transparency reports to the NYAG for two years. Following the end of these obligations, CoinDesk submitted a FOIL request in New York seeking public disclosure of materials relating to Tether’s first quarter that it had submitted under the settlement agreement.

In June 2023, Tether claimed that it had opposed the FOIL request to prevent public dissemination of “confidential customer data” and to prevent the use of “sensitive commercial information,” which it fears could be exploited by “malicious actors.”