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It has been agreed with iFinex, Tether, and related entities that they cease all further activity with New Yorkers, and that they be fined $18.5 million, as well as take several steps to increase transparency.
Lawyer General James also clarified long-held beliefs about Tether’s USD reserve, suggesting that it lied about its reserve. He said,
“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. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.
In addition, NYAG added that Bitifinex and Tether will be banned from operating in New York.
This week, we’re taking action to end Bitfinex and Tether’s illegal activities in New York. These 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.”
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