Nyag Tether Settlement 2021 event

Event · PageRank 0.0000

Overview

In February 2021 the New York Attorney General's office concluded a roughly two-and-a-half-year investigation into Tether and its affiliated exchange Bitfinex with a settlement. The NYAG alleged the companies had commingled client and corporate funds to cover an $850 million shortfall and had misrepresented the extent to which USDT was backed by reserves. Under the settlement the companies paid $18.5 million, agreed to cease trading activity with New York persons and entities, and committed to periodic public reporting on the composition of Tether's reserves. The companies did not admit wrongdoing.

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Frequently asked questions

How much did Tether and Bitfinex pay?

$18.5 million to the State of New York under the February 2021 settlement.

What did the NYAG allege?

That the companies commingled client and corporate funds to cover an $850 million loss and made misleading statements about whether USDT was fully backed by reserves.

What did the settlement require going forward?

Bitfinex and Tether were barred from operating with New York persons and entities and agreed to provide periodic reporting on Tether's reserve composition. They admitted no wrongdoing.