Cryptic Transparency: Unraveling the FOIL Saga

Tether and Bitfinex, in a strategic maneuver reminiscent of a chess match, have adroitly recalibrated their stance, opting to gracefully retract their initial opposition to a Freedom of Information Law (FOIL) request lodged in the labyrinthine world of New York's legal landscape. This decision, akin to a carefully choreographed dance, was communicated through a statement shared , where the USDT stablecoin issuer and cryptocurrency exchange artfully underscore their unwavering commitment to a policy of transparent disclosure. This commitment, they assert, has been honed and tested in the crucible of a prior FOIL request from none other than the heralded CoinDesk earlier in the year.

Yet, as the tapestry of this narrative unfolds, the companies deftly navigate the nuanced waters of communication, emphasizing a sophisticated approach to the release of documentation. In a linguistic ballet, they contend that an indiscriminate dispersal of documents is incongruent with the intricacies of their established business methodologies. The statement, carefully woven, endeavors to convey that transparency, rather than an unbridled divulgence, demands a judicious, context-aware sharing of information, akin to a maestro orchestrating a symphony.

In response to the FOIL request spearheaded by journalists of notable repute—Zeke Faux, Shane Shifflett, and Ada Hui—the companies, in a diplomatic pirouette, announce their decision not to overtly contest it. However, in a rhetorical twirl, they cast an enigmatic shadow, accusing the journalists of exhibiting "certain behaviors," injecting an air of mystique into the proceedings.

The companies, in a choreographed tandem, assert that Faux's journalistic forays into the realms of Tether and Bitfinex have transcended the conventional boundaries of professional reporting. Simultaneously, they level a discerning gaze at media entities such as The Wall Street Journal and Bloomberg, subtly insinuating that their involvement in the ongoing FOIL request has been tinged with a perceived lack of objectivity and factual accuracy, adding a layer of intrigue to the unfolding drama.

In a lyrical reaffirmation of their dedication to transparency, the statement extols that both companies remain open to meaningful dialogues with journalists and regulatory bodies, adorned with an insistence on adherence to the loftiest ethical standards in reporting and a respectful acknowledgment of the sacrosanct boundaries of data privacy. This declaration, akin to a sonnet, seeks to strike a harmonious chord in the symphony of public relations.

In a strategic crescendo, Tether and Bitfinex advocate for a "responsible document review" preceding any potential public release of information. This phraseology, akin to a well-composed refrain, conveys a careful, considered approach, emphasizing that their transparency initiatives are far from synonymous with an unbridled, uninhibited unveiling of all documents—a strategic pause in the melodic progression of their communication.

The ongoing narrative of the FOIL request, akin to an epic saga, finds its roots in the agreement forged between Tether, Bitfinex, and the New York Attorney General (NYAG) in February 2021. A tale initially recounted by CNBC, the agreement involved the payment of a substantial $18.5 million fine, bringing closure to a protracted two-year legal saga revolving around the alleged intermingling of $850 million of client and corporate funds.

A stipulation within the settlement obligated Tether and Bitfinex to submit quarterly transparency reports to the NYAG over a span of two years. Post the culmination of these reporting obligations, CoinDesk, like a curious protagonist, submitted a FOIL request in New York, seeking the public unveiling of materials pertinent to Tether's initial quarter under the terms of the settlement agreement.

In a narrative twist reminiscent of a suspenseful thriller, Tether, in June 2023, asserted its opposition to the FOIL request. Their rationale? A noble endeavor to shield the public from the exposure of "confidential customer data" and to safeguard the realms of "sensitive commercial information" from potential exploitation by lurking "malicious actors." This plot twist introduces an element of suspense, leaving the audience eagerly anticipating the next chapter in this unfolding drama.

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