June 25, 2022

Tether and Pitfinex fined more than $ 42 million by US regulator – cryptocurrencies

Sao Paulo – The US Commodity Futures Trading Commission (CFTC) on Friday (15) fined Bitcoin and Tether over $ 42 million for “misleading or misleading information” about Statcoin. USDT.

According to the Commodity Regulator, Tether lied that all its reserves were in dollars, and according to the CFTC, this occurred only in one of the 26 months analyzed between 2016 and 2018.

In addition, Tether raised reserve funds with the company’s corporate funds and maintained cashless reserves. The requirement for the offenses is a fine of US $ 41 million.

The New York Attorney General’s Office announced similar findings in an investigation into Tether and Bitcoin that ended earlier this year.

The order concludes, “Instead of representing and maintaining all USDT token reserves in US dollars, Tether relies on unregulated companies and some third parties to maintain reserve funding.”

CFTC brought charges against the parent company iFinex for crimes related to its cryptocurrency broker Bitfinex.

According to the commission, the transaction is “involved in the transaction of illegal retail goods outside the brokerage” and the future commission does not act as a trader, without registering with the regulator.

Bitfinex pays $ 1.5 million and installs “extra settings” that will not make it easier to transact illicit goods, the CFTC report said.

Tether denied the allegations and issued a statement saying, “There is no conclusion that Tether’s tokens are not fully secured at all times – simply that all balances are not in cash and all in a bank account in Tether’s name, method”.

In a separate statement, CFTC Commissioner Dan Stump agreed with the body’s findings but expressed concern about his role in regulating staple coins.

“We should try to ensure that the public understands that we do not regulate fixed currencies and that those who issue them do not have a daily view of the business,” Stump said. “But by looking into this issue and resolving it, do we give a consistent sense of comfort that we are overseeing the issuers and sellers of these coins in a way that protects them from misuse?”

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