Cryptocurrency

Metropolitan Commercial Bank Closed the Accounts for Stablecoin Tether

Metropolitan Commercial Bank preserved accounts for stablecoin issuer Tether and affiliated corporations for lower than half a year before shutting them down, and a spokesperson advised CoinDesk.

The New York Attorney General’s office, which is embroiled in an authorized battle with Tether and its sister firm, crypto trade Bitfinex, filed new documentation Monday exhibiting that Tether held accounts at Metropolitan Bank and Signature Bank- two crypto-friendly banks primarily based within the state.

This paperwork has been introduced as proof for the NYAG’s argument that it has the authorized authority to analyze the businesses as a result of they had New York prospects.

Nonetheless, Metropolitan’s relationships with Tether; Bitfinex’s parent firm iFinex; and Digfinex (the bulk proprietor of Tether and iFinex) seem to have been temporary.

A spokesperson for the bank advised CoinDesk Wednesday that there was solely minimal exercise with the three accounts.

The spokesperson explained that the bank itself requested that the accounts be closed, not Tether, iFinex or Digfinex.

A spokesperson for Signature Bank wouldn’t focus on the matter, telling CoinDesk that “we don’t comment on client-related matters.”

The NYAG is investigating Bitfinex’s asserted cover-up of an $850 million loss by borrowing doubtlessly as much as $900 million from Tether’s stock. The reserve is theoretically in place to back the USDT stablecoin, which Tether beforehand claimed was backed 1 to 1 by U.S. dollars.

Bitfinex, Tether and their associates have till July 22 to file a response to the NYAG’s latest motion. The case itself will likely be again in court a week later, with a hearing scheduled for July 29.

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