Tether (USDT), the largest stablecoin issuer in the world, is finding its banking partner, Britannia Financial, at the center of a legal battle. Arbitral International, a British Virgin Islands corporation, is suing Britannia over a $1 billion Tether deposit. 

Tether’s Banking Choice Backfires

According to a recent Financial Times report and court filings in the High Court of Justice in London, Tether has a deposit of over $1 billion with a subsidiary of Britannia Financial Group. 

This deposit is central to the legal dispute between Britannia Financial and Arbitral International. Tether’s decision to place funds with Britannia Financial, founded by Venezuelan-Italian banker Julio Herrera Velutini, comes amid allegations of bribery against Herrera Velutini by US authorities. Britannia Financial, however, has not been accused of any wrongdoing.

The stablecoin issuer itself has faced regulatory scrutiny in the past. The Commodity Futures Trading Commission (CFTC) previously alleged that Tether made misleading statements about the dollar reserves backing its stablecoins. 

Additionally, the New York attorney-general investigated the crypto company for allegedly concealing significant losses and revealed that the company faced challenges in accessing banking services worldwide. 

Arbitral International filed a claim alleging that Britannia Financial failed to pay the full price for a brokerage it sold to the group. The agreement between the parties i

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Author: Ronaldo Marquez

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