Tether and Bitfinex grant FOIL request amid transparency debate

© Jakub Porzycki via Reuters Connect

In a recent development in the cryptocurrency industry, Bitfinex and Bitfinex have consented to a Freedom of Information Act (FOIL) request for transparency reports, signaling a significant change in their approach to public disclosures. The move comes after the companies were criticized for their initial resistance to releasing full documents, citing concerns over sensitive business information and the privacy of customer data.

The FOIL request, initiated by CoinDesk, sought to shed light on the operations of Tether and Bitfinex following an $18.5 million settlement with the New York Attorney General (NYAG) in February 2021. Under this regulation, 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 Freedom of Information Act, fearing that confidential customer data and sensitive business details could fall into the hands of malicious entities. Businesses have expressed concerns about unprofessionalism and bias among journalists and media outlets, emphasizing the need for ethical journalistic standards.

However, as of today, Tether and Bitfinex have dropped their opposition. They now recognize the importance of transparency while continuing to emphasize the importance of protecting customer data and respecting ethical journalistic practices. This concession aligns with Tether’s previous stance of prioritizing transparency over litigation, which was evident when they failed to 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 owner of Tether and Bitfinex. The company’s decision to grant the trio of journalists’ FOIL request is seen as a commitment to transparency, ethical journalistic standards, and respect for data privacy in the cryptocurrency industry.

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