Bitfinex and Tether Face NY Shutdown : What Does This Mean?

By Leslie Quander Wooldridge 

February 23, 2021

In response to accusations that Bitfinex and Tether hid losses and deceived clients, New York Attorney General Letitia James issued an order today “requiring Bitfinex and Tether to end all trading activity with New Yorkers.”  

Pursuant to this development, these two prominent industry players will be required to “submit regular reports to the OAG [Office of the Attorney General] to ensure compliance with this prohibition,” according to a release from her office. 

Bitfinex and Tether, also must pay $18.5 million in penalties to New York as part of the settlement of the case. 

Prior to this settlement, the New York Office of the Attorney General noted that “iFinex — the operator of Bitfinex — and Tether had made false statements about the backing of the ‘tether’ stablecoin,” according to a statement from the office, which includes details about its investigation. 

“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said James in a statement. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.”

Tether noted that it “admits no wrongdoing” in a statement on its website

“The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business,” the statement reads. 

Tether further reported that the “market capitalization of tethers has grown from US$2 billion to in excess of US$34 billion” over the past two years. 

On the heels of this breaking news, the market cap of the global cryptocurrency market was $1.47 trillion with Bitcoin trading at about $48,700 (down about 8 percent in 24-hours), a figure that continues to fluctuate. 

The story is developing.  So check back with Gokhshtein Media for updates. 

Tags : BitfinexCrypto RegulationCryptocurrencyNewYorkTether

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