Last Updated on November 21, 2023 by Bitfinsider
The inventor of the biggest stablecoin in the world, Tether, is reportedly embroiled in a legal battle in London’s High Court. The issue concerns a substantial amount—more than $1 billion—that Tether deposited with Britannia Global Markets, a branch of the well-known investment bank Britannia Financial.
This legal dispute is related to another transaction that Britannia Financial was involved in. The investment bank purchased a Bahamas brokerage from Arbitral International, a British Virgin Islands-registered business, in June 2021. Nevertheless, Britannia Financial is accused by Arbitral International of not paying the agreed upon amount for this acquisition.
As a result, Arbitral asserts their right to more money by referencing a contract that guaranteed them a portion of the company’s assets produced in the year after the sale.
The narrative deepens, though, as Britannia Financial refutes these assertions and emphasizes Tether’s billion-dollar deposit with Britannia Global Markets, a subsidiary. According to the investment bank, there is no connection at all between this transaction and the brokerage agreement with Arbitral. This allegation has sharply highlighted Tether’s role and increased the intricacy of the ongoing legal dispute.
A mainstay in the cryptocurrency space, Tether’s USDT stablecoin provides customers with protection against the frequently unpredictable price swings of cryptocurrencies. Tether has an asset base of $86.4 billion, the majority of which is made up of US Treasury bonds and $5.2 billion in secured loans. Tether’s financial plan has taken another big step forward with their deposit with Britannia Global Markets.
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