Despite claiming that stablecoins was fully pegged to the value of the greenback, but the order declared Tether had enough reserves of less than one third for a period of 26 months (2016 to 2018). Tether also did not perform a professional assessment during the said period.
The order also shows that Tether failed to disclose the inclusion of unsecured receivables and non-fiat assets in its reserves. In addition, Tether has falsely stated that it will undergo regular, professional audits to demonstrate that it maintains “100% reserves” when in fact their reserves are not audited. maths.
CFTC It also fined iFinex, the parent company of the Bitfinex exchange, with a $1.5 million fine for conducting retail foreign exchange commodity transactions.
Acting Director of Enforcement Vincent McGonagle says these actions are intended to promote market integrity:
“As demonstrated by actions today against Tether and Bitfinex, the CFTC is committed to enforcing the law to promote market integrity and protect US customers.”
The CTO of Tether and Bitfinex, Paolo Ardoino, sounded optimistic in his tweet, claiming that the companies can finally ease the burden of the investigation.
In one declare Officially, Tether says that the CFTC has not found anything suspicious in the company's current operations.
“The CFTC order found no issues related to Tether's current activity. In fact, the order involves several disclosures about reserves from more than two and a half years ago. These issues were fully resolved when the terms of service were updated in February 2019.”
In February of this year, Tether also paid a $18.5 million fine to New York Attorney General Letitia James.
At the end of September, the stablecoin issuer won a trillion-dollar market manipulation lawsuit.