Tether and Bitfinex have altered their stance on Freedom of Information Act (FOIL) requests made in New York by prominent media outlets. The USDT stablecoin issuer and cryptocurrency exchange, in a statement shared, affirmed their dedication to transparency after a FOIL request from CoinDesk earlier this year.
However, they declared that while they remain committed to transparency, they will not publicly release the document in response to the FOIL requests. The companies clarified that their commitment to transparency does not imply the bulk release of all documents. They stated their intent not to contest FOIL requests from journalists Zeke Faux, Shane Shifflett, and Ada Hui, but accused them of engaging in what they termed "certain conduct."
Tether and Bitfinex specifically criticized Zeke Faux's past reporting on them, alleging that it surpassed the boundaries of professional journalism. They also cast aspersions on media outlets such as The Wall Street Journal and Bloomberg, whose journalists are participating in ongoing FOIL requests, alleging their reporting to be "one-sided and inaccurate."
Emphasizing their pledge to transparency, both companies expressed their willingness to engage with journalists and regulators while upholding ethical reporting standards and respecting data privacy boundaries. They underscored the necessity for responsible review of documents before any public release, cautioning that their pursuit of transparency does not imply unrestricted public disclosure of all documents.
Cointelegraph reached out to Tether to seek further details about the FOIL request and the related information. The ongoing FOIL request centers on the February 2021 agreement between Tether, Bitfinex, and the New York Attorney General (NYAG). This agreement involved resolving a legal dispute over the alleged mixing of $850 million in client funds and company funds, culminating in an $18.5 million fine as part of the settlement.
The settlement mandated Tether and Bitfinex to submit quarterly transparency reports to the NYAG within a two-year period. CoinDesk, following the conclusion of these obligations, filed a FOIL request in New York seeking the disclosure of materials related to Tether's first quarter as per the settlement agreement. Tether previously objected to the FOIL request, citing concerns about exposing confidential customer data and sensitive commercial information to potential exploitation by malicious actors.
