Tether Bank partner Britannia sues over $1B depositors – Report
Tether's banking partner, Britannia Financial, is said to be suing Tether for failing to pay the full value of Tether's large cash holdings.
Arbitral International, a company registered in the British Virgin Islands, is suing Britain for $1 billion in Tether deposits, the Financial Times reported on November 21, 2023, citing court documents filed at the High Court in London.
The suit relates to Britain's acquisition of a Bahamas-based brokerage called Arbitral Securities. Britannia announced the acquisition in October 2021, merging the brokerage with its own brokerage, Britannia Securities.
According to the new report, Britannia and Arbitral agreed that Britannia Financial will pay an additional sum based on the number of income-producing properties it owns one year after the sale. This agreement is said to include clients who were originally introduced by the arbitrator or related parties.
Citing court records, Tether said it opened an account with British Financial Branch in November 2021.
Britannia Financial was reportedly introduced to Tether by Aldo Mazzella. In the British-Tether partnership.
The news comes a few months after Bloomberg reported that Tether had added British Bank & Trust as a Bahamas-based private bank to process dollar transfers on the platform. Other banking partners are said to include Deltech Bank and Capital Union Bank.
Tether's chief technology officer and new CEO, Paolo Arduino, said the previously stablecoin company has strong relationships with more than seven banks.
Tether and British Financial did not immediately respond to requests for comment from Cointelegraph.
RELATED: Tether Freezes $225M USDT In DOJ Probe Tied To Scammers
The Tether (USDT) stablecoin is steadily gaining momentum in the market and growing to a market capitalization of $90 billion, according to data from CoinGecko. In the year On November 20, the price of USDT hit another new high of $88 billion, up 33% since the start of 2023.
According to Tether, USDT will add more than $20 billion to the market by 2023, due to two key factors, including market excitement in the Bitcoin exchange trading space. Tether's record-breaking growth is also fueling demand in emerging markets such as Brazil, the firm said.
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