Tether, which is the primary company behind the market-leading stablecoin, has recently addressed the concerns that are regarding its operational decisions. According to multiple documents that were released by the New York Attorney General, the stablecoin reportedly deactivated around 29 accounts that belonged to some of the most prominent cryptocurrency players in 2021.
It does appear that most of the individuals on the list had their accounts suspended for quite a few reasons. Now, although the reasons for the terminations of accounts have not been disclosed, the company did respond by indicating that it was quite unwilling to comment on individual and interpersonal relationships.
Tether Has Opened Up About Account Termination
However, Tether did clarify that all of the individuals had already undergone rigorous compliance checks during onboarding, as well as ongoing monitoring, which was mandated by the compliance policies of the company. The deactivated accounts also included BlockFi, MoonPay, Galois Capital, and CMS Holdings. While the NYAG investigation did end up being concluded as early as February 2021, it had come to light that there were certain documents in the investigation which could be extended until around June of 2023.
The NYAG had gathered all the documents while investigating Tether and Bitfinex, its sister company, for misappropriating $850 million in funds. At the same time, iFinex, the parent company for both entities, requested an extension of 30 days, in order to produce the critical financial documents before the expiration of the scheduled date.
