{"id":183857,"date":"2023-11-21T13:39:24","date_gmt":"2023-11-21T13:39:24","guid":{"rendered":"https:\/\/precoinnews.com\/?p=183857"},"modified":"2023-11-21T13:39:24","modified_gmt":"2023-11-21T13:39:24","slug":"tethers-bank-partner-britannia-sued-over-1b-deposit-report","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/crypto\/tethers-bank-partner-britannia-sued-over-1b-deposit-report\/","title":{"rendered":"Tether\u2019s bank partner Britannia sued over $1B deposit \u2014 Report"},"content":{"rendered":"
Tether\u2019s bank partner Britannia Financial is reportedly facing a lawsuit over claims it failed to pay the full price of revenue-generating assets allegedly related to a large deposit from Tether.<\/p>\n
Arbitral International, a company registered in the British Virgin Islands, has sued Britannia over a $1 billion deposit from Tether, the Financial Times reported on Nov. 21, citing court documents filed with London\u2019s High Court in 2023.<\/p>\n
The lawsuit relates to Britannia\u2019s acquisition of Arbitral\u2019s Bahamas-based brokerage business known as Arbitral Securities. Britannia announced the acquisition in October 2021, integrating the brokerage into its own brokerage, Britannia Securities.<\/p>\n
According to the new report, Britannia and Arbitral agreed that Britannia Financial would pay an extra sum based on the number of revenue-generating assets the Arbitral Securities held a year after the sale. The agreement reportedly stipulated this would include the clients originally introduced by Arbitral or related parties.<\/p>\n
Citing the court filings, the report said that Tether opened an account with a subsidiary of Britannia Financial in November 2021.<\/p>\n
Britannia Financial was reportedly introduced to Tether by Aldo Mazzella, described as a \u201cprofessional introducer\u201d and someone believed to have had a commercial relationship with Tether since around 2017. On the other hand, Arbitral argued that an executive at Arbitral Securities also played a role in the Britannia-Tether partnership.<\/p>\n
The news comes a few months after Bloomberg reported that Tether added Britannia Bank and Trust as a\u00a0Bahamas-based private bank to process dollar transfers on its platform. Other banking partners reportedly included Deltec Bank and Capital Union Bank.<\/p>\n
Tether chief technology officer and new CEO Paolo Ardoino reportedly previously claimed that the stablecoin firm had strong relations with more than seven banks.<\/p>\n
Tether and Britannia Financial did not immediately respond to Cointelegraph\u2019s request for comment.<\/p>\n
Related: <\/em><\/strong>Tether freezes $225M in USDT linked to romance scammers amid DOJ investigation<\/em><\/strong><\/p>\n Tether’s (USDT) stablecoin has been steadily gaining momentum on the market and inching toward a $90 billion market capitalization, according to data from CoinGecko. On Nov. 20, USDT’s value hit another new high at $88 billion, adding 33% since the beginning of 2023.<\/p>\n According to Tether, USDT added more than $20 billion to its market cap in 2023 due to two key factors, including continued market excitement around the possible approval of a spot Bitcoin exchange-traded fund. Tether\u2019s record-breaking growth has also been fuelled by growing demand in emerging markets like Brazil, according to the firm.<\/p>\n Magazine: <\/em><\/strong>Exclusive: 2 years after John McAfee\u2019s death, widow Janice is broke and needs answers<\/em><\/strong><\/p>\n<\/p>\n