Tether Partnership Gone Wrong? Britannia Bank Hit With Lawsuit Over $1B Deposit | Bitcoinist.com


21 Nov 2023 5:00 PM

Tether is finding its banking partner, Britannia Financial, at the center of a legal battle. Arbitral International, is suing over a $1 billion Tether deposit. ...

  • Tether, the largest stablecoin issuer, is facing a legal battle involving its banking partner, Britannia Financial.
  • Arbitral International is suing Britannia Financial over a $1 billion Tether deposit.
  • Tether's decision to place funds with Britannia Financial comes amid allegations of bribery against the bank's founder, Julio Herrera Velutini.
  • Tether has faced regulatory scrutiny in the past, including allegations of misleading statements about its dollar reserves.
  • The legal dispute between Britannia Financial and Arbitral International revolves around a claim that Britannia Financial failed to pay the full price for a brokerage it sold.
  • Tether's deposit is within the period covered by the claim, according to Arbitral International.
  • Britannia Financial argues that the funds were deposited with its London-based subsidiary, not the brokerage in question.
  • Britannia Financial's ties to Tether were facilitated by Aldo Mazzella, a "professional introducer" with a commercial relationship with the crypto firm.
  • The outcome of this litigation may have implications for Tether's reputation, the stablecoin market, and the regulatory landscape surrounding digital assets.

The article highlights a legal battle involving Tether and its banking partner, Britannia Financial. It also mentions regulatory scrutiny faced by Tether in the past. Overall, the sentiment is negative due to the legal dispute and potential impact on Tether's reputation and the stablecoin market.

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You May Ask

Who is suing Britannia Financial over a $1 billion Tether deposit?What allegations have been made against Julio Herrera Velutini, the founder of Britannia Financial?What regulatory scrutiny has Tether faced in the past?What is the basis of the legal dispute between Britannia Financial and Arbitral International?How might the outcome of this litigation impact Tether and the broader regulatory landscape for digital assets?

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