Tether, the company behind the leading stablecoin Tether (USDT), addressed concerns about its operational decisions.
According to documents released by the New York Attorney General (NYAG), Tether reportedly disabled around 29 accounts belonging to prominent cryptocurrency players in 2021. Most of the individuals on the list appear to have had their accounts terminated for various reasons.
While the reasons for the account termination were not disclosed, Tether he replied by indicating that he is unwilling to comment on individual relationships. However, the company clarified that all individuals have undergone rigorous compliance checks during sign-up, as well as ongoing monitoring as mandated by Tether’s compliance policy.
MoonPay, BlockFi, CMS Holdings and Galois Capital were among the disabled accounts.
Although the NYAG investigation ended as early as February 2021, it was revealed that some documents in the investigation last until around June of that year. The user codes in these documents have already been redacted.
The NYAG collected these documents while investigating Tether and its sister company Bitfinex for misappropriating $850 million in funds. During this time, iFinex — the parent company of both entities — requested a 30-day extension submit critical financial documents before the previously scheduled date.
Related: USDT issuer Tether reacts to news of Chinese securities exposure
Finally, the participants the parties reached an agreement in which Tether agreed to pay a fine of $18.5 million and cease trading activities in New York. Subsequently, the media and Coinbase asked the NYAG to release Tether’s first quarterly report under the Freedom of Information Act. However, Tether objected to the request, saying it needed to protect its customers’ confidential information from potential misuse by malicious individuals.
Despite Tether’s objection, the NYAG granted the media access to the documents, which revealed the deactivation of many of the company’s accounts.
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