NY-based Metropolitan Commercial Bank shut down Tether's accounts

10 Jul, 2019
by David Robb
News
NY-based Metropolitan Commercial Bank shut down Tether's accounts

A spokesperson for the Metropolitan Commercial Bank has claimed that it shut down accounts associated with stablecoin project Tether (USDT). Coindesk reports that the New York-based institution took the action a short time after they were opened.

The disclosure of this information was pertinent to a recent investigation opened by the New York Attorney General's Office of Bitfinex, the popular crypto exchange and the company behind the leading stablecoin, Tether (USDT). The NYAG alleges that Bitfinex used as much as $900 million of its USD reserves, which are supposed to be used as backing for the 1:1 dollar-pegged USDT, in order to cover its own loss of $850 million. 

The NYAG filed documentation that showed Bitfinex had accounts with the Metropolitan Commercial Bank as well as Signature Bank. This was intended to show that it had legal authority to pursue its investigation into Bitfinex's dealings. 

There were apparently three different accounts opened with Metropolitan by Bitfinex, and according to the bank's spokesperson, "Metropolitan Commercial Bank had limited, corporate operating accounts with Tether Holdings LTD, iFinex Inc, and Digfinex Inc, all with negligible activity, and requested the accounts to be closed after less than 5 months of the accounts being opened". A representative for Signature Bank refused to comment on the issue.

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