logo |

News

    Home   >     Industry    >     Main body

    Bitfinex and Tether Fined $42.5 Million for Misleading Claims on USDT

    Abstract:The US Commodity Futures Trading Commission (CFTC) announced on Friday that it had filed and settled charges against Tether and Bitfinex, imposing a total civil monetary penalty of $42.5 million.
    Tether-Bitfinex-min-1

      Bitfinex and Tether Fined $42.5 Million for Misleading Claims on USDT

      Tether was accused by the CFTC of making 'untrue or misleading' claims about USDT stablecoin being backed by the US

      The US Commodity Futures Trading Commission (CFTC) announced on Friday that it had filed and settled charges against Tether and Bitfinex, imposing a total civil monetary penalty of $42.5 million. According to the press release, charges were brought against Tether Holdings Limited, Tether Limited, Tether Operations Limited, and Tether International Limited for their responsibility in making misleading statements about USDT stablecoin being allegedly backed by fiat US dollar.

      That said, Tether was ordered to pay $41 million for such untrue claims. Also, the CFTC filed and settled separate charges against iFinex Inc., BFXNA Inc., and BFXWW Inc. (d/b/a Bitfinex) in connection with their operation of the Bitfinex crypto trading platform. The authority found that Bitfinex is engaged in illicit off-exchange retail commodity transactions with digital assets with US persons. As a result, Bitfinex should pay a $1.5 million civil monetary penalty.

      Tether Response

      In response to the CFTC decision, Tether Operations Limited issued the following statement: “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. As Tether represented in the Order, it has always maintained adequate reserves and has never failed to satisfy a redemption request. The CFTC’s findings regarding Bitfinex relate to the timing and implementation of its ban on US customers, and the CFTCs Order makes no finding of a violation after December 2018.”

      The company behind USDT stablecoin also commented that they always showed a willingness to resolve this matter ‘in order to move forward and focus on the future.’

      “As demonstrated by today‘s actions against Tether and Bitfinex, the CFTC is committed to carrying out its statutory charge to promote market integrity and protect US customers,” Vincent McGonagle, CFTC’s Acting Director of Enforcement, commented.

    pasted
    Risk Warning

    The Database of FX919 comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. FX919 doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. FX919 will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by FX919 are not in accordance with the fact, please click 'Complaints 'and 'Correction' to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the FX919 site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with FX919, the client should bear full responsibility for their consequences.