Tether and Bitfinex have mutually agreed to withdraw their initial opposition to a Freedom of Information Law (FOIL) request filed in New York by various prominent news outlets. The decision, outlined in a statement, emphasizes the commitment to transparency following a FOIL request from CoinDesk earlier this year.
What is a FOIL Request? Article 6 of the New York State Public Officers Law is known as the Freedom of Information Law (FOIL). This law allows members of the public to request records from New York State or local government agencies.
While the companies express their willingness to share information transparently, they maintain that openly releasing documentation is not aligned with their business practices. Tether and Bitfinex will not contest the FOIL request initiated by journalists, including Zeke Faux, Shane Shifflett, and Ada Hui, whom they accuse of displaying "certain behaviors."
The companies assert that Faux's past reports on Tether and Bitfinex have exceeded the boundaries of professional journalism. They also contend that media outlets involved in the ongoing FOIL request, such as The Wall Street Journal and Bloomberg, have presented "one-sided and inaccurate" coverage.
Emphasizing their commitment to transparency, Tether and Bitfinex express openness to engaging with journalists and regulatory authorities, provided that ethical reporting standards and data privacy boundaries are respected. The statement calls for a responsible document review before any public release of information, clarifying that their efforts toward transparency do not equate to unrestricted public disclosure of all documents.
The ongoing FOIL request is linked to Tether and Bitfinex's settlement with the New York Attorney General (NYAG) in February 2021. The agreement, which involved an $18.5 million fine, resolved a legal dispute over the alleged commingling of $850 million of client and corporate funds. As part of the settlement, Tether and Bitfinex were required to submit quarterly transparency reports to the NYAG for two years. CoinDesk's FOIL request seeks public disclosure of materials related to Tether's first quarter under the settlement agreement. Tether had previously opposed the FOIL request, citing concerns about the dissemination of confidential customer data and sensitive commercial information.
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