Tether’s $1 Billion Deposit Sparks Legal Battle
Tether, the leading stablecoin issuer, deposited over $1 billion with a
subsidiary of Britannia Financial Group, igniting a legal dispute in
London’s High Court.
Dispute Over Tether’s Deposit
A recent report published by the Financial Times has revealed a legal
conflict in London involving Tether’s $1 billion deposit with a financial
services firm. Court filings show that Tether initiated the deposit in
November 2021 through a Britannia Financial subsidiary.
The disagreement revolves around an accusation by Arbitral International
that Britannia Financial failed to complete payment for a Bahamas brokerage
sold in June 2021. Britannia Financial denies the claim, stating that
Tether made the deposit with its London subsidiary, Britannia Global
Markets.
Tether Under Regulatory Scrutiny
Tether has encountered regulatory challenges, including allegations by the
Commodity Futures Trading Commission of misleading claims about the
backing of its stablecoins with sufficient dollars. The New York attorney
general also investigated Tether for allegedly concealing large losses and
lacking access to banks worldwide from mid-2017. Tether settled both
investigations without admitting liability.
The legal battle comes at a time when London is seeking to establish itself
as a cryptocurrency industry hub, with regulators exploring the potential
use of stablecoins for payments in the UK. Tether has also reportedly
started using a Bahamas-based bank, Britannia Bank & Trust, owned by
Britannia Financial, for processing dollar transfers.
Hot Take: Tether’s Legal Woes and Regulatory Challenges
Tether’s $1 billion deposit with Britannia Financial has sparked a legal
battle in London, adding to the company’s regulatory woes. As Tether faces
scrutiny, London aims to embrace the crypto industry, but challenges
persist. Amid these issues, Tether’s use of stablecoins for payments is in
the spotlight, reflecting the evolving landscape of cryptocurrency
regulation and oversight.
By
By
By
By
By