Legal Battle Threatens Tether's $1 Billion Deposits in London Court
Date: 2023-11-23 Author: Dima Zakharov Categories: BUSINESS
Legal Clash over $1 Billion Deposits
A legal dispute involving Tether, the world's largest stablecoin, has emerged in the High Court of London, highlighting a conflict surrounding deposits exceeding $1 billion. As reported by Financial Times journalists, Tether's issuer deposited significant funds into the accounts of its subsidiary, Britannia Financial, becoming a focal point in a legal battle.
The Financial Institution Tussle
Britannia Financial, entangled in a legal tussle with Arbitral International, faces allegations of insufficient payment for a brokerage firm in the Bahamas, a purchase made back in June 2021. Arbitral International insists on additional funds, claiming rights as per their agreement with Britannia, referencing assets generated within a year post-sale.
Tether's Defense
Representatives from Britannia Financial contend that Tether placed funds into the accounts of their subsidiary, Britannia Global Markets, stressing no linkage to the dealings with Arbitral. Tether, known for providing crypto users shelter from market volatility, secures assets totaling $86.4 billion in US Treasury bonds and other reserves.
Recent Investigations and Asset Freeze
In recent developments, Tether collaborated with OKX exchange and the US Department of Justice (DOJ), jointly investigating illicit activities in Southeast Asia. Consequently, the stablecoin issuer froze tokens worth $225 million, a move directly tied to actions of a criminal syndicate.
