- Tether and Bitfinex, two major players in the cryptocurrency world, have decided to work together in response to a Freedom of Information Law (FOIL) request made by several notable news organizations in New York. This marks a shift from their initial resistance to the request.
- In a recent announcement, Tether and Bitfinex emphasized their dedication to transparency, following a FOIL request by CoinDesk. However, they stressed that full transparency does not necessitate the release of all their documents, citing business practice concerns.
- The companies have expressed discontent with certain journalists, particularly Zeke Faux, Shane Shifflett, and Ada Hui, and media outlets like The Wall Street Journal and Bloomberg.
Cryptocurrency firms Tether and Bitfinex have recently announced their decision to collaborate with journalists and regulatory authorities in New York. This cooperation comes in the wake of a Freedom of Information Law (FOIL) request from major news publications, including CoinDesk. The companies had initially shown resistance to this request, but have now shifted their stance, signaling a commitment to a more transparent approach.
However, Tether and Bitfinex made it clear that their commitment to transparency does not equate to a complete release of all their internal documents. They argue that such an action would not align with their business practices, emphasizing the need for responsible document review and respect for data privacy.
Transparency in Focus
Tether and Bitfinex stated that they will not contest the FOIL request made by journalists including Zeke Faux, Shane Shifflett, and Ada Hui. However, they have expressed concerns over the past reporting practices of these journalists, especially in relation to their coverage of Tether and Bitfinex. The companies allege that some reports have crossed the line of professional journalism, describing the coverage by The Wall Street Journal and Bloomberg as biased and inaccurate.
Balancing Openness and Privacy
In their statement, Tether and Bitfinex underscored their willingness to engage with journalists and regulators, provided that these parties adhere to ethical reporting standards and respect boundaries related to data privacy. They called for a measured approach to document review before any public release, arguing that their push for transparency does not automatically imply unrestricted public access to all documents.
The ongoing FOIL request stems from a 2021 agreement Tether and Bitfinex reached with the New York Attorney General. The agreement, which included an $18.5 million fine, resolved a legal dispute over the alleged mingling of client and corporate funds. As part of the settlement, Tether and Bitfinex were required to submit regular transparency reports to the New York Attorney General for a two-year period.
After fulfilling these requirements, CoinDesk requested public disclosure of the materials Tether submitted under the settlement agreement via a FOIL request in New York. Tether initially opposed this request, citing concerns over the potential misuse of sensitive commercial information and the protection of confidential customer data from malicious actors.
