According to Cointelegraph, Tether, the founder of the stablecoin Tether (USDT $1.00), explained its concern related to the operational strategies that it made.
With insights from documents introduced by the New York Attorney General (NYAG), in 2021, Tether had discontinued about 29 accounts belonging to some popular cryptocurrency users. It is expected that the accounts of the users mentioned on the list were shut down for various reasons, Cointelegraph added.
Supposedly, the reasons for the closing of the accounts were still unknown and Tether mentioned that it was not willing to talk about its relation with the users. It is believed that the organisation specified that all users went through a rigorous compliance check during onboarding along with keeping a close track of them, as per the followed by Tether’s compliance rules, Cointelegraph highlighted.
Furthermore, the parties involved in this incident made a deal where Tether promised to pay a penalty of about $18.5 million and discontinue exchange activities in New York, Cointelegraph concluded.
(With insights from Cointelegraph)