Tether Deposits Over $1 Billion with Britannia Financial Group
In a surprising twist, Tether, a major player in stablecoins, is caught up in a legal tangle in London’s High Court. The Financial Times report reveals a shocking development—Tether put a massive $1 billion in a subsidiary of Britannia Financial, a well-known investment bank.
Behind this legal drama is Britannia Financial’s ongoing clash with Arbitral International, a company from the British Virgin Islands. The issue? Arbitral International claims that Britannia Financial, led by the controversial Julio Herrera Velutini, didn’t pay the full price for a Bahamas brokerage it bought in June 2021.
Tether Under the Microscope
Tether’s stablecoin, USDT, is a linchpin in cryptocurrency trading, including big names like Bitcoin and Ethereum. Each USDT token is supposed to be backed by a US dollar. However, Tether’s ownership structure, asset management, and financial ties remain a mystery.
The founder of Britannia Financial, Julio Herrera Velutini, made headlines in August 2022 when US authorities accused him of bribery. This adds complexity to the already complicated legal situation.
Regulatory Challenges Revisited
Tether has dealt with regulatory scrutiny before. In 2021, the Commodity Futures Trading Commission accused the company of making misleading statements about having enough dollars to support each stablecoin. At the same time, a New York attorney general’s investigation claimed Tether couldn’t access banks worldwide from mid-2017 for a certain period.
Despite these challenges, Tether settled both investigations without admitting guilt.
Herrera Velutini’s Link to the UK’s Conservative Party
In a twist adding a political angle to the unfolding drama, Julio Herrera Velutini, amid bribery allegations, reportedly donated over half a million pounds to the UK’s Conservative Party. The timing of these contributions, including a substantial £100,000 shortly before the 2019 general election, raises questions.
Herrera Velutini resigned as a director of Britannia Global Markets in late November 2021. Britannia Financial’s CEO, Mark Bruce, assures that he’s not involved in day-to-day management, but uncertainties linger.
Tether’s Future in Question
As the legal showdown between Britannia Financial and Arbitral International plays out, it threatens to reveal more about Tether’s connection with Britannia Financial. The consequences go beyond the courtroom, potentially impacting the reputation of the Conservative Party.
The outcome of this high-stakes case could reshape not only the financial landscape but also the political narrative, making it a story worth following closely.