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Britannia Faces Lawsuit, the banking partner of Tether, is presently entangled in a legal dispute. That over allegations of failing to fulfill the complete payment for revenue-generating assets purportedly associated with a substantial deposit from Tether.
Arbitral International, a British Virgin Islands-registered company, has initiated a lawsuit against Britannia concerning a $1 billion deposit from Tether. This information reported by the Financial Times on November 21. Citing court documents filed in the High Court of Justice in London in 2023.
The legal disagreement centers around Britannia’s acquisition of Arbitral’s Bahamas-based brokerage business, known as Arbitral Securities. Which integrated into Britannia Securities in October 2021.
Britannia Faces Lawsuit: Additional Payments, Client Inclusions, and Key Players
According to court filings, Britannia and Arbitral had an agreement stipulating that Britannia Financial would make an additional payment based on the number of revenue-generating assets held by Arbitral Securities a year after the sale. This arrangement said to include clients initially introduced by Arbitral or affiliated parties.
Also Read: Bitcoin Surges $38,000 Strong Despite SEC Delay
As per the report, Tether established an account with a subsidiary of Britannia Financial in November 2021. Britannia Financial’s introduction to Tether was reportedly facilitated by Aldo Mazzella. Described as a “professional introducer” with a commercial relationship with Tether since around 2017. Conversely, Arbitral asserted that an executive at Arbitral Securities also played a role in the partnership between Britannia and Tether.
Tether’s Market Surge and Banking Partnerships: Britannia, Bloomberg Report, and CEO Statements
This development follows Bloomberg’s earlier report that Tether had included Britannia Bank and Trust as a Bahamas-based private bank for processing dollar transfers on its platform, alongside other banking partners such as Deltec and Capital Union Bank.
Tether’s Chief Technology Officer and newly appointed CEO, Paolo Ardoino, had previously asserted strong relationships with over seven banks. Despite this, Tether and Britannia Financial have not responded to Cointelegraph’s request for comment.
Tether’s stablecoin has demonstrated consistent market growth, approaching a $90 billion market capitalization, as indicated by CoinGecko data. On November 20, the value of USDT reached a new high at $88 billion, marking a 33% increase since the beginning of 2023. Tether attributes this growth to factors such as ongoing market enthusiasm for the potential approval of a spot Bitcoin exchange-traded fund and increased demand in emerging markets like Brazil.
