Tether and Bitfinex withdraw opposition to FOIL request

Tether and Bitfinex have chosen not to challenge the Freedom of Information Law (FOIL) request initiated by journalists, including Zeke Faux, Shane Shifflett and Ada Hui, whom they accuse of displaying “certain behaviors.” 

The companies allege that Faux’s prior reports on Tether and Bitfinex exceeded the boundaries of professional journalism. 

FOIL request in action

In the Nov. 24 announcement, the two firms claim that media outlets, such as The Wall Street Journal and Bloomberg, have journalists involved in the ongoing FOIL request, have presented “one-sided and inaccurate” information. Tether and Bitfinex share that, in contrast their goal is to set a higher moral standard and “lead by example.”

The current FOIL request is linked to the agreement between Tether, Bitfinex and the New York Attorney General (NYAG) in February 2021. Initially reported by CNBC, the agreement included a payment of an $18.5 million fine to resolve a two-year legal dispute over the alleged commingling of $850 million in client and corporate funds.

As part of the settlement terms, Tether and Bitfinex committed to submitting quarterly transparency reports to the NYAG for a two-year period. Upon the conclusion of these obligations, CoinDesk initiated a FOIL request in New York, seeking the public disclosure of materials related to Tether’s first quarter as submitted under the terms of the settlement agreement.

A bid for openness

The announcement concludes with Tether emphasizing both firm’s commitment to transparency, stating that their actions are intended to assert positions as leaders in their respective industries for openness. 

The decision not to contest the FOIL request is a demonstration of dedication to responsible business practices and maintaining a reputation for transparency, in contrast to 2021 comments that Tether’s claims that it is lying about U.S. dollars fully backing its virtual currency at all times.