Tether, the company behind the market-leading stablecoin Tether, has addressed concerns about its operating decisions. According to documents released by the New York Attorney General (NYAG), Tether reportedly deactivated approximately 29 accounts belonging to well-k now cryptocurrency players in 2021. Most of the people on the list appear to have had their accounts terminated for different reasons.
While the reason for the account termination was not disclosed, Tether responded that it would not comment on personal relationships. However, the company clarified that all individuals have undergone rigorous compliance checks during onboarding and are subject to ongoing monitoring, as set out in Tether's compliance policy. The deactivated accounts include MoonPay, BlockFi, CMS Holdings, and Galois Capital.
Although the NYAG investigation ended as early as February 2021, it is understood that some documents in the investigation will continue until about June of the same year. User code in these documents has been edited.
The NYAG collected the documents as part of its investigation into the misappropriation of $850 million from Tether and its sister company Bitfinex. During this time, iFinex, the parent company of both entities, requested a 30-day extension to produce key financial documents before the Previously scheduled date expired. Ultimately, the parties involved reached a settlement, with Tether agreeing to pay an $18.5 million fine and cease trading in New York. Subsequently, the media and Coinbase asked the NYAG to publicly disclose Tether's initial quart erly report under the Freedom of Information Act. However, Tether opposed the request, citing the need to protect its customers' confidential information from potential exploitation by malicious individuals.
Despite Tether's objections, the NYAG gave media access to the documents, revealing how many of the company's accounts were deactivated.
