Metropolitan Bank Maintains Tether’s Account for 5 Months Before Closing It Down

Metropolitan Commercial Bank held accounts for stablecoin issuer Tether and associated firms for five months before closing them down, a spokesperson said.

The office of the New York Attorney General (NYAG), which is entangled in a legal battle with Tether and crypto exchange Bitfinex, submitted new documentation on July 8, presenting that Tether maintained accounts at two crypto-friendly banks based in the state, Signature Bank and Metropolitan Bank.

These documents were showed as evidence for the NYAG’s argument that it has the legal capacity to scrutinize the companies because they had customers from New York.

However, the relationships Metropolitan with Tether, iFinex, and Digfinex seem to have been short-lived.

A bank spokesperson said on July 10 that there was only minimal transaction with the three accounts, stating:

“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.” 

The spokesperson elucidated that the bank itself asked that the accounts be terminated, not Tether, iFinex, or Digfinex.

The NYAG is currently looking into Bitfinex’s purported cover-up of an $850 million loss by borrowing probably up to $900 million from Tether’s reserves. Tether formerly asserted that the USDT stablecoin was backed 1 to 1 by U.S. dollars.

Bitfinex, Tether, and affiliated companies can file a response to the NYAG’s latest motion until July 22. The case will be back in court with a hearing slated on July 29.