Tether And Bitfinex Drop Resistance To FOIL Request, Prioritize Transparency

In a recent announcement, Tether (USDT) and its sister company Bitfinex have declared their decision to withdraw opposition to a New York Freedom of Information Law (FOIL) request filed by a group of journalists, including Zeke Faux from Bloomberg Businessweek. 

The FOIL request relates to Tether and Bitfinex’s agreement with the New York Attorney General (NYAG) to pay a $18.5 million fine to settle a two-year lawsuit over the alleged mixing of $850 million of customer and company money.

The company behind the largest stablecoin by trading volume stated that Tether had demonstrated its dedication to transparency through past actions, such as dropping opposition to a FOIL request made by Coindesk earlier this year. 

However, the company stated that it is essential to clarify that “transparency does not imply an indiscriminate release of all documents,” as this approach would not align with standard business practices.

Tether And Bitfinex Choose Transparency Over Opposition

While concerns have arisen regarding the nature of the most recent FOIL request received by Tether and Bitfinex, particularly in light of certain behaviors exhibited by the journalists involved, including Zeke Faux, Shane Shifflett, and Ada Hui, the companies have affirmed their decision not to appeal the request further. 

The companies have also observed “one-sided and inaccurate” reporting from various media outlets, including the Wall Street Journal and Bloomberg, whose journalists participate in this FOIL request. Consequently, Tether and Bitfinex aim to set a higher moral standard and lead by example.

The commitment to transparency by Tether and Bitfinex never compromises their responsible handling of business information, according to the announcement. 

The companies remain “open to constructive engagement” with journalists and regulatory authorities who adhere to ethical reporting standards and respect data privacy boundaries. 

Selective Document Disclosure

The companies emphasize the importance of responsible document review and handling before any public disclosure. Transparency, they stress, should not be misconstrued as unrestricted public release of all documents.

Tether further stated that both companies are steadfast in their reputation as the most transparent companies in their respective industries, and they are committed to upholding this standing. The company concluded:

Both Bitfinex and Tether stand as the most transparent companies in their industries, and we are committed to maintaining this reputation. Our decision to not appeal this FOIL request reinforces our commitment to both responsible business practices and transparency.

The companies aim to set a “higher moral standard within the industry,” remaining open to constructive engagement while emphasizing the importance of ethical reporting and data privacy.

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