10/12/2023 0 Comments 1click tetherThese legal actions send a clear message that we will stand up to corporate greed whether it comes out of a traditional bank, a virtual currency trading platform, or any other type of financial institution.”Ī Stablecoin Without Stability – Tethers Weren’t Fully Backed At All Times This week, we’re taking action to end Bitfinex and Tether’s illegal activities in New York. Last week, we sued to shut down Coinseed for its fraudulent conduct. This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system. “Tether’s claims that its virtual currency was fully backed by U.S. “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. An agreement with iFinex, Tether, and their related entities will require them to cease any further trading activity with New Yorkers, as well as force the companies to pay $18.5 million in penalties, in addition to requiring a number of steps to increase transparency. However, an investigation by the Office of the Attorney General (OAG) found that iFinex - the operator of Bitfinex - and Tether made false statements about the backing of the “tether” stablecoin, and about the movement of hundreds of millions of dollars between the two companies to cover up the truth about massive losses by Bitfinex. In the case of Tether, the company represented that each of its stablecoins were backed one-to-one by U.S. Stablecoins, specifically, are virtual currencies that are always supposed to have the same real-dollar value. dollar - to buy goods and services, often times anonymously, through secure online transactions. Millions around the country and the world today use virtual currencies as decentralized digital currencies - unlike real, regulated government currencies, including the U.S. NEW YORK – New York Attorney General Letitia James today continued her efforts to protect investors from fraudulent and deceptive virtual or “crypto” currency trading platforms by requiring Bitfinex and Tether to end all trading activity with New Yorkers. Hiding Approximately $850 Million in Losses Around the Globe Bitfinex and Tether Must Submit to Mandatory Reporting on Efforts to Stop New York Tradingīitfinex and Tether Deceived Clients and Market by Overstating Reserves,
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