The largest stablecoin issuer, Tether, deposited more than $1 billion into a company that is currently at the center of a legal battle at London’s High Court.
Tether deposit worth more than $1 billion, which was made with a subsidiary of Britannia Financial Group, appears in a legal battle between Britannia Financial and Arbitral International, a company based in the British Virgin Islands, it has been learned the Financial Times, citing court documents.
According to the report, Tether opened an account with the subsidiary in November 2021, when its market capitalization grew by $3 billion in just one week, according to data from CoinGecko.
According to the court filing, Britannia did not pay the full price for a Bahamas-based brokerage it purchased from Arbitral in June 2021. An agreement between Britannia and Arbitral included an additional payment based on the amount of income-producing assets the company possessed. year after its sale, including client assets presented by Arbitral.
Under the agreement, Arbitral argues that Britannia owes it extra money and notes that the Tether deposit was made after the sale. Britannia Financial denies the allegations and says the stablecoin issuer deposited the funds not with the brokerage firm, but with its London-based subsidiary Britannia Global Markets.
According to Britannia, Tether was introduced to the company by Aldo Mazzella, a “professional pitchman” who had a business relationship with the stablecoin giant since 2017. Arbitral, in turn, claims that an executive at the brokerage firm was also involved. in the presentation. . At press time, Tether made no public statements on the matter.
In late August 2023, Tether chose Britannia as its dollar transfer provider. While it is unclear when the two entities began collaborating, the Bahamas-based bank became the third entity in the country to work with Tether.
