Tether and Bitfinex to Pay $42 Million Fine

US financial regulator, the Commodity Futures Trading Commission (CFTC) has imposed fines totaling $42.5 million on Tether and Bitfinex for their different misconduct against the regulations of the country’s

According to the announcement, it was revealed that Tether had made misleading statements about its popular Stablecoin, USDT. The announcement highlighted how the Stablecoin company had falsely claimed that the USDT was fully backed by the U.S. dollars, however, this was false. Due to this, the regulator ordered the crypto company to pay a fine of $41 million.

iFinex, the parent company of Bitfinex, was asked to pay a fine of $1.5 million for the misdeeds related to Bitfinex. Per CFTC, the crypto exchange was not registered to operate as a futures commission merchant (FCM) and it also offered “illegal, off-exchange retail commodity transactions.”

The crypto exchange would not only have to pay the fine, it would also have to assiduously work to keep off “unlawful retail commodity transactions” on its platform.

The general counsel to Bitfinex, Stuart Hoegner, while speaking on the fines said that the infractions happened during a “markedly different time in our ecosystem.” He continued that the firm had also been able to maintain adequate reserves for its Tether Stablecoin and it has never been unable to fulfill a redemption request.

In his words, “as to the Tether reserves, there is no finding that tether tokens were not fully backed at all times—simply that the reserves were not all in cash and all in a bank account titled in Tether’s name, at all times.”

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