iFinex owned Bitfinex and Tether finally settled with NYAG today after nearly a 2-year long court battle. NYAG has accused Bitfinex of misappropriating $850 million worth of funds and trying to cover it via borrowing from Tether. NYAG in its official statement said,
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 several steps to increase transparency.
The official statement from Attorney General James also shed light on long-drawn theories about Tether’s USD reserve claiming the firm 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.
The statement further added that NYAG would prohibit Bitifinex and Tether 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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Source: Bitfinex and Tether Settles Dispute With NYAG With .5 Million Penalty