As per the recent publications, the New York Attorney General (NYAG) has made some documents publicly available that claim Tether deactivated about 29 accounts in 2021 that belonged to widely recognised cryptocurrency firms such as MoonPay, BlockFi, CMS Holdings, and Galois Capital.
Deactivation of Accounts of Major Crypto Firms
Although the reasons for the account closures were not made public, it seems as the majority of those who were on the list had their accounts closed for many different reasons.
However, the business stressed that all of them had undertaken extensive compliance checks upon onboarding, as well as advance monitoring, as required by Tether’s regulations regarding compliance.
NYAG’s Inquiry into Tether
It’s noteworthy that the NYAG inquiry was finished as far back as February 2021, it has recently come to light and even some of the investigations’s documentation are from June of the same year.
Tether Paid $18.5M as Fine
Its parent business, iFinex, asked for a 30-day extension during this period in order to deliver the crucial financial records before the initially slated deadline passed. All of this resulted in an agreement under which Tether consented to pay a fine of $18.5 million and cease doing business in New York.
The media requested the NYAG to publish the papers under their Freedom of Information Act. Following the request, the NYAG granted media outlets permission to examine the papers, even after the objection from Tether.
Printing Profit in 2023
It is important to remember the fact that Tether constantly prioritized operational excellence, transparency, and accountability over all other considerations.
Remarkably, it made a profit of almost $700 million at the end of last year, despite the significant losses the cryptocurrency sector suffered in previous year and the failure of numerous crypto exchanges. In an effort to catch up to MicroStrategy, Tether Holdings also stated last month in its Q1 2023 report that it had bought 52,670 Bitcoin.