April 21, 2021

Tether and Bitfinex litigation ended

Tether and Bitfinex litigation ended

Tether (issuer of the largest stablecoin USDT) and Bitfinex will no longer be able to provide trading services to citizens New York, in addition, both organizationswill have to pay $ 18.5 million in fines. In general, their two-year trial with the office of the attorney general of New York came to an end.

The proceedings began in April 2019,when the Attorney General's office in New York announced that Bitfinex had lost $ 850 million and secretly used Tether funds to cover losses to the Crypto Capital payment system.

In fact, the money was confiscated by government agencies in the US, Portugal, and Poland, and Bitfinex has been working to get it back ever since.

The prosecutor's office also said that both companies related to the cryptocurrency made false statements about the backing of Tether (USDT) with dollars:

“By breaking the law, Bitfinex and Tether hidhuge financial losses to falsify your financial results. Tether's claims that its virtual currency was always fully backed by US dollars turned out to be false.

These companies were hiding the true risk with whichinvestors collide, and are managed by unlicensed and unregulated individuals and entities operating in the darkest corners of the financial system. "- said Attorney General of New York Letitia James.

The conclusion said that her office had taken “measuresto end the illegal activities of Bitfinex and Tether in New York ", since both organizations will no longer be able to trade in the state. In addition, Tether and Bitfinex will have to pay the state $ 18.5 million in fines.

Tether has posted its own answer inwhich says that both companies are "pleased with the settlement of the litigation." In addition, it is reported that Tether and Bitfinex have been fully cooperating with the authorities over the past couple of years, in fact not acknowledging "any violations."

Tether and Bitfinex litigation ended

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