Bitfinex and Tether Fined $18.5M in Settlement With NY Attorney General, Both Firms Barred From Trading in the City – Altcoins Bitcoin News

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Bitfinex and Tether are banned from operating in New York and are fined $ 18.5 million in a 2019 case in a settlement with the New York Attorney General (NYAG).

In a statement on Tuesday, New York Attorney General Letitia James accused the two companies of hiding heavy losses from investors. “Bitfinex and Tether have ruthlessly and illegally recovered massive financial losses to keep their program running and protect their bottom line,” said James.

She continued, “Tether’s claim that his virtual currency was fully backed by US dollars at all times was a lie. These companies have hidden the real risk to investors and have been operated by unlicensed and unregulated individuals and companies operating in the darkest corners of the financial system. “

According to a statement, an investigation by a New York attorney general found that the companies made false statements about supporting Tether, with Bitfinex using Tether’s funds to secretly cover a $ 850 million financial hole at its Panama-based bank, Crypto Capital .

According to the investigation, as of 2017, Tether had no access to the banking system and at that time did not have reserves to secure the Tether in circulation (USDT). Bitfinex stresses that it has not lost any money and claims that Crypto Capital’s funds have been seized by governments in Portugal, Poland and the US

Bitfinex and Tether are no longer allowed to trade with the citizens of New York. NYAG requested the two companies to provide regular reports on their core business functions. Tether must also offer public disclosure by category of assets supporting the Tether, including disclosure of loans or receivables to or from affiliates.

Tether released a statement Tuesday in which he “admitted that he had not committed any wrongdoing”. It argued:

The attorney general’s office essentially concluded that we could better publicize these events. Contrary to online speculation, after two and a half years there was no finding that Tether ever issued Tethers without support or manipulated crypto prices.

What do you think of Bitfinex and Tether resigning themselves to the NYAG office? Let us know in the comments below.

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