CFTC Refuses FOIA For Bitfinex and Tether (USDT) Subpoenas Request


CFTC Rejects Bitfinex and Tether’s Request for Subpoenas

US Commodity Futures Trading Commission (CFTC), an independent agency that works towards preventing fraudulent handling and risk within funds and options market, has recently denied the Freedom of Information Action (FOIA) subpoenas for cryptocurrency exchange, Bitfinex and stable-coin creator, Tether.

According to the claims made, the request rejected on June 5, 2018, was first filed in February of this year. The FOIA was specifically asked for by Bitfinex, Tether and their respective arms. Here is an exact quote from the letter:

“subpoenas issued for iFinex inc. also known as Bitfinex and its subsidiary companies, as well as subpoenas issued Tether Limited and its subsidiary companies.”

Based on a statement revealed by the CFTC, the decision was a result of the “thousands of responsive records, all of which are exempt from the FOIA’s disclosure requirement.” This eventually led the US regulator to deny the request altogether. To further argue the reason for denial, one FOIA exemption was provided, where it stated the possible hindrance that can arise to “law enforcement activities” as well as confidentiality concerns.

Clearly, it stated that, “… That exemption is intended to ensure that confidential sources are not lost because of retaliation against the sources for past disclosures or because of the sources’ fear of future disclosures.”

This is apparently not the first ever request made for subpoenas by both Bitfinex and Tether, as they received them on December 6th, 2017, however, the reason for this request was never disclosed.

When the likes of CoinDesk and Cointelegraph reached out to Bitfinex’s head of marketing, Kasper Rasmussen, he remained neutral stating that such presence of regulators is quite common and that it was not in their “policy to comment any such requests”. As for Tether, the team involved has not made an official statement.

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