Tether and Bitfinex Navigate FOIL Request Terrain with a Transparency Pivot

<p><br></p><p><span>Tether
and Bitfinex have withdrawn their opposition to a New York Freedom of
Information Law (FOIL) request filed by Coindesk earlier this year.
Nevertheless, they emphasize that transparency doesn't imply an unrestricted
release of all documents.</span></p>
<h1><span>FOIL
Request Saga: Tether and Bitfinex's Stand</span></h1>
<p><span>Concerns
have arisen about the latest NY FOIL request, particularly in light of the
behavior exhibited by journalists, including Zeke Faux, Shane Shifflett, and
Ada Hui. Tether and Bitfinex want to make it clear that they will not further
appeal this FOIL request.</span></p><p><span>However,
it does not compromise their commitment to handling business information
responsibly. Both companies remain open to constructive engagement with
journalists and regulatory authorities adhering to ethical reporting standards
and respecting data privacy boundaries. </span><span>They
emphasize that responsible document review and handling are crucial before any
public release, clarifying that transparency does not mean unrestricted public
disclosure of all documents.</span></p>

<p>In January 2022, a report from <a href="https://www.financemagnates.com/">Finance Magnates</a> stated that <a href="https://www.financemagnates.com/cryptocurrency/tether-asks-court-to-protect-private-companies-confidential-information/">CoinDesk
had officially entered the legal dispute</a> between stablecoin operator Tether
and the New York Attorney General. The issue revolved around the disclosure of
Tether's reserve breakdown. The conflict began in June, 2021 when CoinDesk
filed a Freedom of Information Law Request (FOIL) for documents detailing
Tether's reserve composition. </p>
<p>Tether initially resisted the
request, but CoinDesk's appeal was successful, leading to access being granted.
The ongoing dispute involved Tether's attempt to block access, citing concerns
about compromising its competitive advantage, investment strategy, and
relationships with crucial partners. </p>
<p>CoinDesk maintained its interest
is solely in the breakdown sent to the Attorney General in May, while Tether
argues the information is already publicly accessible without jeopardizing its
competitive position.<span> Tether
and Bitfinex also note instances of one-sided and inaccurate reporting from
various media outlets, including the Wall Street Journal and Bloomberg, whose
journalists are involved in this FOIL request. </span></p>

<blockquote><p lang="en" dir="ltr">Tether and
Bitfinex Agree to Drop Opposition to FOIL Request<br>Read more
⬇️<a href="https://t.co/3AhYiK3j7K">https://t.co/3AhYiK3j7K</a></p>—
Tether (@Tether_to) <a href="https://twitter.com/Tether_to/status/1728037232282337686?ref_src=twsrc%5Etfw">November
24, 2023</a></blockquote>
<h2>Uncovering the 2016 Bitcoin
Robbery</h2>
<p>A report earlier this year stated
that <a href="https://www.financemagnates.com/cryptocurrency/2016-crypto-hack-bitfinex-hid-a-report-that-flagged-security-flaws-occrp/">Bitfinex
reportedly did not disclose a confidential report</a> revealing security lapses
responsible for the theft of over 119,000 BTC in August 2016, valued at
approximately $3.2 billion. The Organized Crime and Corruption Reporting
Project obtained the report, commissioned by iFinex, the owner of Bitfinex, and
conducted by blockchain services firm Ledger Labs. </p>
<p>The report indicates Bitfinex's
failure to implement recommended operational, financial, and technological
controls by its security partner Bitgo. It highlights a flawed security system,
storing two of three keys on a single device, potentially giving hackers
complete access to the exchange's internal system. The report also suggests the
hack may have originated from Poland based on the source IP address.</p>
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This article was written by Tareq Sikder at www.financemagnates.com.