Tether and Bitfinex Settle Dispute, Will Share Information Under FOIL Request – Here’s What You Need to Know
On April 24, 2020, Bitfinex and Tether, two major crypto companies, settled their legal dispute and agreed to share information with the New York State attorney general under a Freedom of Information Law (FOIL) request. The announcement was made via a newsletter from the New York Attorney General’s office.
The dispute began back in April 2019 when the office of the New York State Attorney General accused Bitfinex and Tether of hiding the fact that Bitfinex had borrowed $850 million from Tether during 2018 and 2019.
The attorney general’s office also alleged that Bitfinex and Tether provided misleading information to customers and clients about Tether’s reserves.
Under the settlement, Bitfinex and Tether have agreed to cease and desist from further activities that could mislead or harm their customers and provide information to the attorney general’s office under a FOIL request.
The office of the New York State Attorney General also clarified that the settlement does not address the underlying allegations that Bitfinex and Tether’s activities violated New York’s Martin Act or applicable regulations.
The details of the settlement have not yet been disclosed; however, it likely means that Bitfinex and Tether will be more transparent with their customers in the future. The settlement demonstrates that the New York State Attorney General takes customer protection seriously and is willing to make sure companies comply with both state and federal laws.