Tether’s bank partner Britannia sued over $1B deposit: Report
Tether’s bank partner Britannia Financial is reportedly facing a lawsuit over claims it failed to pay the full price of revenue-generating assets allegedly related to a large deposit from Tether.
Arbitral International, a company registered in the British Virgin Islands, has sued Britannia over a $1 billion deposit from Tether, the Financial Times reported on Nov. 21, citing court documents filed in the High Court of Justice in London in 2023.
The lawsuit relates to Britannia’s acquisition of Arbitral’s Bahamas-based brokerage business known as Arbitral Securities. Britannia announced the acquisition in October 2021, integrating the brokerage into its own brokerage, Britannia Securities.
According to the new report, Britannia and Arbitral agreed that Britannia Financial would pay an extra sum based on the number of revenue-generating assets the Arbitral Securities held a year after the sale. The agreement reportedly stipulated this would include the clients originally introduced by Arbitral or related parties.
Citing the court filings, the report said that Tether opened an account with a subsidiary of Britannia Financial in November 2021.
Britannia Financial was reportedly introduced to Tether by Aldo Mazzella, who is described as a “professional introducer” and someone believed to have had a commercial relationship with Tether since around 2017. On the other hand, Arbitral argued that an executive at Arbitral Securities also played a role in the Britannia-Tether partnership.
The news comes a few months after Bloomberg reported that Tether added Britannia Bank and Trust as a Bahamas-based private bank to process dollar transfers on its platform. Other banking partners reportedly included Deltec Bank and Capital Union Bank.
Tether chief technology officer and new CEO Paolo Ardoino reportedly previously claimed that the stablecoin firm had strong relations with more than seven banks.
Tether and Britannia Financial did not immediately respond to Cointelegraph’s request for comment.
Related: Tether freezes $225M in USDT linked to romance scammers amid DOJ investigation
Tether’s (USDT) stablecoin has been steadily gaining momentum on the market and inching toward a $90 billion market capitalization, according to data from CoinGecko. On Nov. 20, USDT’s value hit another new high at $88 billion, up 33% since the beginning of 2023.
According to Tether, USDT added more than $20 billion to its market cap in 2023 due to two key factors, including continued market excitement around the possible approval of a spot Bitcoin exchange-traded fund. Tether’s record-breaking growth has also been fuelled by growing demand in emerging markets like Brazil, according to the firm.
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Politics
Rachel Reeves turning around UK’s finances ‘like Steve Jobs did for Apple’, claims minister
Rachel Reeves will turn around the economy the way Steve Jobs turned around Apple, a cabinet minister has suggested ahead of the upcoming spending review.
Science and Technology Secretary Peter Kyle compared the chancellor to the late Apple co-founder when asked on Sky News’ Sunday Morning with Trevor Phillips where the £86bn for his department is coming from.
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Apple Inc. chief executive Steve Jobs, who died in 2011. Pic: Reuters
Chancellor Rachel Reeves
The package, confirmed ahead of the full spending review next week, will see each region in England granted £500m to spend on science projects of their choice, including research into faster drug treatments.
Asked by Trevor Phillips how the government is finding the money, Mr Kyle said: “Rachel raised money in taxes in the autumn, we are now allocating it per department.
“But the key thing is we are going to be investing record amounts of money into the innovations of the future.
“Just bear in mind that how Apple turned itself around when Steve Jobs came back to Apple, they were 90 days from insolvency. That’s the kind of situation that we had when we came into office.
“Steve Jobs turned it around by inventing the iMac, moving to a series of products like the iPod.
“Now we are starting to invest in the vaccine processes of the future, some of the high-tech solutions that are going to be high growth. We’re investing in our space sector… they will create jobs in the future.”
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The spending review is a process used by governments to set departmental budgets for the years ahead.
Asked if it will include more detail on who will receive winter fuel payments, Mr Kyle said that issue will be “dealt with in the run-up to the autumn”.
“This is a spending review that’s going to set the overall spending constraints for government for the next period, the next three years, so you’re sort of talking about two separate issues at the moment,” he said.
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‘So we won’t get an answer on winter fuel this week?
Scrapping universal winter fuel payments was one of the first things Labour did in government – despite it not being in their manifesto – with minsters saying it was necessary because of the financial “blackhole” left behind by the Tories.
But following a long-drawn out backlash, Sir Keir Starmer said last month that the government would extend eligibility, which is now limited to those on pension credit.
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It is not clear what the new criteria will be, though Ms Reeves has said the changes will come into place before this winter.
Mr Kyle also claimed the spending review will see the government invest “the most we’ve ever spent per pupil in our school system”.
However, he said the chancellor will stick to her self-imposed fiscal rules – which rule out borrowing for day-to-day spending – meaning that while some departments will get extra money, others are likely to face cuts.
Politics
Minister dismisses US misgivings over Chinese ‘super embassy’ in London – as Tories warn of ‘espionage base’
A minister has dismissed reported US misgivings about plans for a Chinese “super embassy” near London’s financial districts.
Peter Kyle told Sky News’ Sunday Morning with Trevor Phillips that security concerns will be “taken care of assiduously in the planning process”.
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There have been protests against the new Chinese embassy. Pic: Reuters
According to The Sunday Times, the White House has warned Downing Street against the proposed massive embassy at Royal Mint Court.
The site is between financial hubs in the City of London and Canary Wharf and close to three data centres, raising concerns about espionage risk.
Asked for the government’s view on the risk, Mr Kyle said: “These issues will be taken care of assiduously in the planning process.
“But just to reassure people, we deal with embassies and these sorts of infrastructure issues all the time.
“We are very experienced and we are very aware of these sorts of issues constantly, not just when new buildings are being done, but all the time.”
He added that America and Britain “share intelligence iteratively” and if they raise security concerns through the planning process “we will have a fulsome response for them”.
However, shadow home secretary Chris Philp said he shared the US’s concerns.
He told Trevor Phillips: “I agree with the United States. We think it is a security risk in the government.
“The Conservatives were very clear. We should not be allowing the Chinese to build the super embassy. It is likely to become a base for their pan-European espionage activities.”
He added that underneath the sites are cables connecting the City of London to Canary Wharf and these could be intercepted.
Sky News has contacted the Chinese embassy for comment.
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China has been attempting to revise plans for the Royal Mint building, opposite the Tower of London, since purchasing it in 2018.
The proposal for the embassy, which would be China’s largest in Europe, was previously rejected by Tower Hamlets council in 2022.
However, Beijing resubmitted it in August after Labour won the election, and the plans were “called in” by Angela Rayner, the deputy prime minister and housing secretary.
It means that an inspector will be appointed to carry out an inquiry into the proposal, but the decision ultimately rests with central government rather than the local authority.
Two large protests were held at the site in February and March, which organisers claimed involved thousands of people.
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