Dutch Parliament Has Questions After ING Confirms Banking Relationship With Bitfinex And Tether

February 21, 2018 12:38 AM

On February 19, 2018, Dutch MP Henk Nijboer submitted a series of questions to minister of finance Wopke Hoekstra after the publication of an investigative article on Bitfinex and Tether’s banking relationship with ING. Nijboer’s questions are reproduced below, translated as well as possible without departing from the MP’s syntax. ETHNews will continue to provide coverage as this story evolves.

The Dutch Parliament’s curiosity about Tether occurs at a time when there are increasing concerns about the company’s executives. It was recently revealed that the US Commodity Futures Trading Commission had subpoenaed Bitfinex and Tether in December 2017. Then, in January 2018, Tether and its auditor, Friedman LLP, dissolved their partnership.

MP Henk Nijboer’s Questions:

Question 1

Are you familiar with the article “The Money Trail In Alleged Giant Cryptocurrency Fraud Leads To ING”?

Question 2

What is your impression of Tether and its financial position?

Question 3

Why did the “Taiwanese banks” have their relationship with Tether terminated at that time? What normally happens to account balances in such a case?

Question 4

What are the rules for ING with regard to accepting a customer that has been sent elsewhere? Do you agree that in a case like Tether all alarm bells should go off? Why did ING proceed to accept Tether as a client?

Question 5

To what extent can ING deliberately cooperate with a crime? Is Tether indeed guilty of fraud or another crime?

Question 6

How do you assess the scope of banks’ duty of care with regard to crypto coins? Do banks have no greater responsibility toward their customers than is now being taken? How do you rate the step of US credit card companies to no longer accept transactions related to cryptocurrencies?

Question 7

How is client acceptance by banks monitored? To what extent does the Public Prosecution Service have insight into potentially malicious clients?

Question 8

How are consumers protected from potential criminal providers of crypto coins and trading platforms of crypto coins? Does this case again confirm the need for more supervision on this sector, certainly in view of the ever-increasing amount of money involved?

Question 9

If a company misappropriated hundreds of millions of dollars by promising that every dollar deposited in Tether corresponded to a dollar on the bank, which government or investigative authority intervenes? Is there international coordination? What is the role of the Netherlands when ING has played an important role?

Questions Reproduced with Assistance from Google Translate

Matthew is a writer with a passion for emerging technology. Prior to joining ETHNews, he interned for the U.S. Securities and Exchange Commission as well as the OECD. He graduated cum laude from Georgetown University where he studied international economics. In his spare time, Matthew loves playing basketball and listening to podcasts. He currently lives in Los Angeles. Matthew is a full-time staff writer for ETHNews.

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