- The NY Attorney General’s office has settled with Bitfinex and Tether
- Bitfinex and Tether will cease all operations in New York
- They will also pay an $18.5 million fine alongside other requirements to increase transparency
The New York Attorney General’s office has reached an $18.5 million settlement with Bitfinex and Tether for alleged illegal activities in the state of NY. According to the official announcement, New York’s Attorney General, Letitia James, also ordered Bitfinex and Tether to cease all operations in the state as a means of protecting investors from fraudulent and deceptive activities of both companies.
Attorney General James pointed out that both Bitfinex and Tether made false statements about backing their stablecoin of Tether with actual US dollars. Furthermore, the two companies covered up the truth about massive losses by Bitfinex.
The settlement also came with the following requirements for both Bitfinex and Tether.
- The two companies to provide regular reports on business functions as well as clear details of funds held in their reserves
- Tether to provide public disclosures of assets backing USDT
Tether and Bitfinex Thanks their Loyal Customers
In response, the team at Tether and Bitfinex were pleased with the settlement. However, they admitted no wrongdoing and will pay the fine as a way of putting the matter to rest and focusing on their respective businesses in the crypto industry.
The teams at both Tether and Bitfinex also thanked their customers for their continued loyalty via the following statement.
We are pleased that our customers have shown loyalty and commitment to our businesses over the past two years, while this investigation was ongoing. The market capitalization of tethers has grown from US$2 billion to in excess of US$34 billion over that time period, and Bitfinex has seen dramatic growth, as well, particularly this year. We look forward to both companies continuing to lead the industry and serve our customers.