By Hidayat Sultanli
On Feb 24, 2021
The long-awaited case has been ended. NY Attorney General and Tether (USDT) released public announcements. Crypto lovers can take a deep breath.
Tether (USDT) is the leading cryptocurrency in the market. Recently there have been allegations that they do not have 1-1 backed stablecoin with USD. Also, they are accused of having shady transactions with the Bitfinex exchange.
On the 23rd of February, NY General Attorney made a public statement. Attorney General Letitia James firstly mentioned the role of the purpose of the investigation. They make investigations to protect the right of individuals and companies situated in New York. They required the Bitfinex and Tether to stop operation with New Yorkers. According to the report, Bitfinex and Tether made false statements about stablecoin. Not all the time, USD backed the stablecoin. In agreement with iFinex and Tether, they have to pay an $ 18,5 million penalty and stop trading activities with the New Yorkers. Besides those, they have to take steps to increase transparency.
Investigations of OAG began no later than mid-2017. Since then, OAG requested them to show real statements regarding stablecoin. Tether issued verification of accounts during the year. According to the report, they put enough amount of funds just in the morning of verification. Similarly, in 2018, they moved their funds to Bitfinex just after the company verification.
Beginning of the operations, Tether and Bitfinex claimed that they do not do business with New Yorkers. However, in reality, they did do business activities. Even though they operate globally, their operations encompassed New York, and it gives legal grounds to OAG to investigate those institutions.
According to the press release, Tether admits no wrongdoings. “The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business.”
Tether provided more than 2.5 million pages of documentation to OAG to investigate. Also, this settlement resolves the allegations about an $ 850 million loan to Bitfinex. After two and a half years, Tether may have done a better job at disclosing its documents, but OAG did not find any proof of issuing stablecoin without backing and manipulating the prices.
After the press release from both parties, we can conclude that the case has finally closed. Cryptocurrency enthusiasts can take a deep breath now.
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