Tether’s $1 billion bank deposits are the subject of legal battle

In question are the USDT issuer’s funds on accounts of Britannia Bank subsidiary

21.11.2023 - 14:50

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What’s new? Deposits of Tether for more than $ 1 billion, placed on the accounts of a subsidiary of the investment bank Britannia Financial, became the subject of proceedings in London’s High Court. Thus, Britannia Financial is a defendant in a lawsuit registered in the British Virgin Islands Arbitral International. It alleges that the bank will not pay the full amount of the deal to purchase a subsidiary broker Arbitral, which took place back in June 2021.

The FT material

What else is known? Arbitral International, citing the agreement made as part of the deal, claims that it is entitled to receive additional funds from the broker’s revenues earned in the year after the sale.

So, according to court documents, Tether opened the account in November 2021. Arbitral claimed it was entitled to those deposits because they were made within 12 months of the sale of the business.

In turn, Britannia argues that Tether’s deposits are irrelevant to the revenue of the broker acquired from Arbitral because they are held in the accounts of a subsidiary of Britannia Global Markets

The cooperation between Tether and Britannia became known from the media in August of this year. At that time, Bloomberg’s sources reported that Tether had been asking customers to send money to Britannia’s bank account to buy USDT stablecoins for several months.

The day before, Tether and crypto exchange OKX conducted the largest USDT freeze in history. Together with the US Department of Justice, they blocked $225 million worth of coins linked to Southeast Asian slave traders.

Issued by Tether USDT is the largest stablecoin and ranks third in the ranking of cryptocurrencies by market capitalization with a value of $87,92 billion.

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