Tether responded to CoinDesk’s intervention, claiming the conflict is only between Tether and the NYAG
According to The Block Crypto, CoinDesk recently filed to become a listed party in an ongoing case regarding a Freedom of Information Law (FOIL) request for Tether reserves breakdown. But Tether has responded to CoinDesk’s intervention submission, claiming the conflict is between Tether and the NYAG.
Tether responds to CoinDesk intervention in ongoing reserves information case
The conflict began last June when CoinDesk filed a Freedom of Information Law request (FOIL) for documents detailing the breakdown of Tether’s reserves. Tether and its parent company iFinex submitted this information to the NYAG as a settlement in February over the alleged coin partnership. New York’s Freedom of Information Law enables public members to request access to government records.
Tether responded by asking a New York court to force the NYAG to deny the request because the information requested constitutes a trade secret, could damage competitive advantage, and damage relationships. As the conflict centered on CoinDesk’s claim, the news outlet asked to intervene or become a party to the case, which allowed them to present their evidence and arguments.
At the time, Tether responded in a statement indicating that CoinDesk shares an investor, Digital Currency Group, with stablecoin issuer and Tether competitor Circle. Following the statement, CoinDesk updated its coverage of the legal case with the disclosure of DCG’s investment. At first, FOIL staff denied the request, but CoinDesk gained access on appeal.
Tether responded to CoinDesk’s interference in its latest free-of-information court filing, claiming the conflict centered on its settlement agreements with the NYAG – not the arguments of the news outlet.
CoinDesk officially entered the legal proceedings between Tether and the New York Attorney General last month, competing to be an official party to the case since Freedom of Information Law (FOIL) requests are at the center of the dispute. In its latest filing, Tether argued that the conflict was based on the facts of the agreement between the company and NYAG and that the news outlet could not “re-negotiate” the terms by bringing itself into the matter.
“While CoinDesk tells this Court that it ‘adheres to strict rules of journalistic ethics,’ its reporting on this proceeding did not disclose to its readers this glaring conflict of interest, until Tether and others complained,” the filing said.
Tether uses this to support its argument that reserve documents constitute a trade secret and give way to competitors like Circle.
“No private business would disclose publicly the investment strategies critical to its profitability and ability to differentiate itself from the competition,” said the filing. “Doing so would give the competition unfair insight that could be exploited.”
Tether argues that since the question is whether the NYAG should present the documents and CoinDesk does not have the power to produce the documents, in this case, it is not equal. Because the NYAG procedure initially denied the FOIL request, Tether argued that the process should not be manipulated by CoinDesk interference. Furthermore, Tether contends that the power to resolve the conflict remains with the NYAG, as the settlement agreement it entered into with the office sets forth the terms of the disclosure.
“The only true Respondents here are the ones named in the Petition (OAG and the individual Appeals Officer),” said the filing. “The Court should therefore disregard CoinDesk labeling itself as a Respondent, and at all events should not allow CoinDesk’s misleading labels to alter OAG’s clear procedural default—which is grounds alone to grant the Petition (to block access).”
It went on to point out that the material arguments focus on the current agreement between itself and the NYAG, stating, “CoinDesk should not be able to insert itself after the fact to renegotiate the agreed terms essentially.”
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