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 dollar.
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 the USDT Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term 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 Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. The authority found that Bitfinex is engaged in illicit off-exchange retail commodity transactions utilising digital assets with US citizens. 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 CFTC’s Order makes no finding of a violation after December 2018.”
Furthermore, the company behind USDT stablecoin 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.
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 the USDT Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term 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 Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. The authority found that Bitfinex is engaged in illicit off-exchange retail commodity transactions utilising digital assets with US citizens. 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 CFTC’s Order makes no finding of a violation after December 2018.”
Furthermore, the company behind USDT stablecoin 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.