Tether used the signature bank to access the US banking system: report
Tether used the signature bank to access the US banking system: report
After the collapse of the Signature Bank last month, most of their assets and some of their loans were taken over by the New York Community Bancorp (NYCB).
However, all crypto -related customers have been informed that their accounts would be closed shortly. Signet, the proprietary software of the Signature Bank, which made it possible for its crypto customers to carry out transactions in USD between such platforms at any time of the day, remained in bankruptcy management.no direct exposure
originally undertook as a signature, said Paolo Ardoinino - the CTO of Tether - that Tether had no commitment to the Signature Bank.
- Paolo ardoinino 🍐 (@paoloardoinino) 12. March 2023
While Tether did not open an account with Signature, unnamed sources have stated, according to Bloomberg, that the company used Signet as a means of transfer of funds to the USA.
to pay USt, Tether customers instructed to pay money to the Capital Union Bank Ltd. To send one of the banks connected to the company together with Deltec Bank & Trust Ltd. and Cantor Fitzgerald Ltd.
When Tether was asked for a comment, he said that the use of Signet was only one of several options to maintain connections to the global banking system.
"Banks used by Tether always had access to several bank channels and opponents. This enabled us to identify certain risks and weaknesses that had overlooked others and ensure that our companies are neither directly nor indirectly exposed to signature."
The source rejected it to comment on the time frame of the use of Signet by Tether.
no allegations about misconduct
It is unclear whether this agreement was set for all transactions of this type in stone or whether the Signature Bank knowingly approved the use of Signet by Tether. Alma Angotti, a former representative of the SEC and the Ministry of Finance, said that if signature had known from the agreement, this could have been a way to deal with Tether without taking the full risk of working with an offshore tablecoin company."If signature knew about the agreement and allowed it, this could indicate a high risk appetite. You may have known and decided that this is less risky than to open an account for Tether."
However,tether was never sanctioned, so that dealing with the company in some property would not have had a legal risk of signature. In addition, the Signature Bank and its employees were not accused of misconduct in this regard and will probably remain without accusations against them.
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