Tether’s deposit of over $1 billion with a financial services firm has come under scrutiny in London’s High Court.
According to a Tuesday report from The Financial Times , Tether’s funds were deposited with a subsidiary of investment bank Britannia Financial, according to filings made in the High Court.
The legal battle involves Britannia Financial and Arbitral International, a British Virgin Islands-registered company.
Arbitral claims that Britannia failed to make the full payment for a Bahamas brokerage it acquired from Arbitral in June 2021.
As per their agreement, Arbitral insists it is entitled to additional funds from the business’s assets generated in the year following the sale.
However, Britannia contends that the deposit made by Tether with its subsidiary, Britannia Global Markets, is unrelated to the brokerage purchase from Arbitral. The financial services firm argues that the funds were deposited separately.
Tether’s USDT is currently the largest stablecoin globally, offering crypto users protection against the frequent volatility experienced in the cryptocurrency market.
The company holds approximately $86.4 billion worth of assets, primarily consisting of U.S. Treasuries. Additionally, Tether’s asset portfolio includes $5.2 billion in secured loans.
Last week, Paolo Ardoino, Tether’s incoming CEO, said that the company plans to invest approximately $500 million over the next six months.
The company’s investment strategy includes constructing its own mining facilities and acquiring stakes in other mining companies.
The new venture represents a significant departure from Tether’s primary business of running the USDT stablecoin, which maintains a one-to-one value with the US dollar.
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