Bitfinex – Tether to close operations in New York and pay $ 18.5 million

0


Cryptocurrency platforms have been ordered to, Bitfinex Y Tether to end all digital currency trading activity with New Yorkers, according to the New York Attorney General's Office.

The official statement published on February 23 stated that the agreement with iFinex, Tether and their related entities would require them to shut down any additional business with New Yorkers.

In addition, the two companies must also pay $ 18.5 million in fines as part of the settlement.

Tether will need to take a number of steps to increase transparency, including providing regular reports on business functions, clarity on details about your funds held as reserves, etc. Tether You will also need to provide public disclosures of the assets backing Tether, separated by category, including any loans from affiliated entities.

New York Attorney General, andLetitia James' tweet He said:

“We are ending Bitfinex and Tether virtual currency trading in New York after the companies covered around $ 850 million in losses worldwide and misled the market by overstating reserves. Those who trade virtual currencies in New York cannot avoid our laws, period.

She said Bitfinex and Tether "recklessly and illegally" hid significant financial losses to keep their scheme going and protect its bottom line.

Even when the controversial legal battle was resolved today, James He went on to say that Tether's claims of being a virtual currency fully backed by US dollars were a lie.

He added that the companies covered up the true risks investors face and were operated by unlicensed and unregulated individuals and entities operating in the "Darkest corners of the financial system."

"This resolution makes clear that those who trade virtual currencies in New York State and think they can avoid our laws cannot and will not."

Tether and Bitfinex response

In a joint declaration, Tether and Bitfinex said the two companies were "pleased" to have reached a legal procedures agreement with the New York Attorney General's Office.

Under the terms of the agreement, both Tether as Bitfinex admitted to not having committed any crime and said that the amount to be paid of the agreement should be considered as a measure of their desire to leave this matter behind. and focus on your business.

The statement also claimed that there were no findings regarding speculation that Tether issued USDT without endorsing or manipulating cryptocurrency prices in the past two years.

However, Tether said that it acknowledged that it made the loan highlighted by NYAG but that it has since been fully repaid. The company also clarified that the loan did not prevent it from issuing refunds at any time.


If you found this article interesting, here you can find more news about Blockchain and cryptocurrencies





Leave A Reply

Your email address will not be published.

19 + 19 =