According to a recent report, Tether, the issuer of the world’s largest stablecoin, finds itself at the heart of a legal dispute in London’s High Court. The case revolves around a hefty sum of over $1 billion deposited by Tether with Britannia Global Markets, a subsidiary of the prominent investment bank Britannia Financial.
Background of the Dispute
This legal confrontation stems from a separate deal involving Britannia Financial. In June 2021, the investment bank acquired a Bahamas brokerage from Arbitral International, a company registered in the British Virgin Islands. However, Arbitral International alleges that Britannia Financial failed to pay the agreed-upon price for this acquisition.
Consequently, Arbitral claims entitlement to additional funds, citing an agreement that promised them a share of the business’s assets generated in the year following the sale.
Tether’s Role in the Dispute
However, the plot thickens as Britannia Financial counters these claims, highlighting Tether’s billion-dollar deposit with its subsidiary, Britannia Global Markets. The investment bank asserts that this transaction is entirely unrelated to the brokerage deal with Arbitral. This claim has brought Tether’s involvement into sharp focus, adding a layer of complexity to the ongoing legal battle.
Tether’s USDT stablecoin is a cornerstone in the cryptocurrency world, offering users a shield against the often erratic price movements of cryptocurrencies. With an asset base of $86.4 billion, Tether’s holdings are primarily in U.S. Treasuries, alongside $5.2 billion in secured loans. This deposit with Britannia Global Markets marks another significant move in Tether’s financial strategy.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.