Bitfinex and Tether must stop operating in New York and pay a fine of 18.5 million dollars

New York Attorney General Letitia James has requested Bitfinex and Tie to delist in New York, according to a statement today. The two companies will pay $ 18.5 million to reach an agreement with NYAG.

“Bitfinex and Tether recklessly and illegally covered up massive financial losses to keep their scheme running and protect its bottom line,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by US dollars at all times was a lie. These companies concealed the true risk investors faced and were operated by unlicensed and unregulated individuals and entities that operated in the darkest corners of the financial system.

According to the statement, the two firms made false statements about the endorsement of Tether and the movement of hundreds of millions of dollars between the company, to cover losses when the police confiscated their funds from their shadow bank Crypto Capital.

The statement referenced the OAG’s investigation, which it says finds that as of mid-2017, Tether had no access to the banking system and had no reserves to support the Tether in circulation at the time.

As a result, Bitfinex and Tether will no longer be able to do business with citizens of New York. Companies will also need to provide regular reports on business functions, providing clear details about their funds held as reserves. Tether must provide public disclosures of the assets backing Tether, separated by category, including any loans to or from affiliated entities.

Tether responds to NYAG

In a statement, Tether has provided its response to the NYAG findings. The firm said it has not admitted any wrongdoing under the terms of the agreement.

“The Attorney General’s Office concluded, in essence, that we could have done better by publicly disclosing these events. Contrary to online speculation, after two and a half years, Tether was not found to issue moorings without backing, or to manipulate prices. of cryptocurrencies, “Tether said.

Tether acknowledged that it made the loan highlighted by NYAG, but that it has since been repaid in full. Tether said the loan did not stop the company from issuing refunds at any time.

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