Tether and Bitfinex yield to FOIL request amid transparency debate
© Jakub Porzycki via Reuters Connect
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In a recent development in the cryptocurrency industry, Tether and Bitfinex have consented to a Freedom of Information Law (FOIL) request seeking transparency reports, signaling a significant shift in their approach to public disclosures. This move comes after the companies faced criticism for their initial resistance to releasing full documents, citing concerns over sensitive commercial information and customer data privacy.
The FOIL request, initiated by CoinDesk, aimed to shed light on Tether and Bitfinex’s operations following an $18.5 million settlement with the New York Attorney General (NYAG) in February 2021. As part of the settlement, the companies were mandated to provide regular reports for two years, detailing their financial practices and ensuring compliance with regulatory standards.
Despite their advocacy for transparency, Tether and Bitfinex initially opposed the FOIL due to fears that confidential customer data and sensitive commercial details could fall into the hands of malicious entities. The companies expressed concerns over unprofessionalism and bias from journalists and media outlets, emphasizing the need for ethical journalism standards.
However, as of today, Tether and Bitfinex have dropped their opposition. They are now acknowledging the importance of transparency while continuing to stress the significance of protecting customer data and upholding ethical journalism practices. This concession aligns with Tether’s earlier stance on prioritizing transparency over litigation, which was evident when they did not resist CoinDesk’s FOIL request earlier in the year.
CryptoSlate has expressed interest in obtaining more information regarding this FOIL request, highlighting the ongoing scrutiny surrounding iFinex Inc., the Hong Kong-based proprietorship of both Tether and Bitfinex. The company’s decision to accede to the journalist trio’s FOIL request is seen as a commitment to transparency, ethical journalism standards, and respect for data privacy within the cryptocurrency sector.
