According to a recent report, Tether, the issuer of the world’s largest stablecoin, finds itself at the heart of a legal dispute in London’s High Court over a hefty sum of over $1 billion deposited by Tether with Britannia Global Markets, a subsidiary of the prominent investment bank Britannia Financial.
Background of the Dispute
This legal confrontation stems from a separate deal involving Britannia Financial, which acquired a Bahamas brokerage from Arbitral International in June 2021. Arbitral International alleges that Britannia Financial failed to pay the agreed-upon price for this acquisition and claims entitlement to additional funds, citing an agreement that promised them a share of the business’s assets generated in the year following the sale.
Tether’s Role in the Dispute
The plot thickens as Britannia Financial counters these claims, highlighting Tether’s billion-dollar deposit with its subsidiary, Britannia Global Markets. The investment bank asserts that this transaction is entirely unrelated to the brokerage deal with Arbitral, adding a layer of complexity to the ongoing legal battle.
Tether’s USDT stablecoin is a cornerstone in the cryptocurrency world, offering users a shield against the often erratic price movements of cryptocurrencies. With an asset base of $86.4 billion, Tether’s holdings are primarily in U.S. Treasuries, alongside $5.2 billion in secured loans. This deposit with Britannia Global Markets marks another significant move in Tether’s financial strategy.
Hot Take
Tether’s involvement in the legal dispute over the $1 billion deposit with Britannia Global Markets raises questions about the stablecoin’s financial strategies and legal entanglements, adding a layer of complexity to the ongoing legal battle.
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