Bank Tied to Tether Goes Quiet on Relationship With Crypto Firm

A day after Tether said it had $1.8 billion stored in Bahamas-based Deltec Bank & Trust Ltd., that bank refused to comment on whether it has a relationship with the controversial cryptocurrency company.

Tether, which has faced questions about whether it actually backs its popular namesake digital coins with dollars as it claims, released a letter attributed to Deltec Nov. 1 that said the company has an account with the bank. Deltec spokeswoman Melanie Hutcheson, reached by phone Nov. 2, declined to confirm or deny whether that’s true.

Tether is a so-called stable coin, meaning that it’s supposed to ...