Metropolitan Bank of New York is closing Tether accounts. According to recent reports, the bank has asked Tether, the company behind the USDT, to close all of its bank accounts. Tether and its affiliates had accounts in the bank for about 6 months. However, the bank wanted to close 3 accounts recently opened by the company.
Why is Metropolitan Bank closing Tether accounts?
Why did the bank make such a request? Could the inadequate financial activity in Tether accounts be the answer? A spokesperson told a crypto news outlet that there was no sufficient activity since the opening of Tether accounts:
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.
According to recent reports, the New York attorney general’s office, Tether, and the leading crypto exchange, BitFinex submitted over 30 documents proving that they in fact have operated in New York while the defendents claimed otherwise.
Earlier this month, the BitFinex exchange announced that it had paid its $ 100 million debt by transferring it to Tether’s bank accounts. The description was:
Also on July 1st, Bitfinex fully prepaid all interest accrued under the loan facility to Tether up to the end of day on June 30, 2019, also in fiat.
Those news are not good for Tether and one will see how it affects their current performance.