In response to recent claims of deactivating accounts belonging to prominent crypto firms, Tether Holdings Inc has released a statement addressing the controversy and emphasizing its commitment to compliance. The issuer of the stablecoin USDT confirmed that approximately 29 accounts were deactivated in 2021, including those of notable entities like MoonPay, BlockFi, CMS Holdings, and Galois Capital. While specific reasons for the terminations were not disclosed, Tether clarified that all individuals had undergone thorough compliance checks during onboarding and ongoing monitoring.
The controversy stemmed from documents released by the New York Attorney General (NYAG) during their investigation into Tether and its sister company Bitfinex for the misappropriation of $850 million. The investigation concluded in February 2021, but documents extending until June of that year have come to light, with user codes redacted. Tether and Bitfinex settled with the NYAG, agreeing to pay an $18.5 million penalty and cease trading activities in New York.
During the settlement process, media outlets, including Coinbase, requested access to the NYAG’s quarterly report under the Freedom of Information Law. Tether objected, citing the need to protect customers’ confidential information from potential exploitation. However, the NYAG allowed the documents to be disclosed, revealing the deactivation of multiple cryptocurrency company accounts as part of the investigation.
Tether’s response seeks to provide clarity on the situation, assuring that all terminated accounts had undergone stringent compliance procedures. By raising awareness of their commitment to regulatory compliance, Tether aims to reinforce trust in its stablecoin and ongoing operations within the cryptocurrency industry.
