Cryptocurrency firms Tether and Bitfinex agree to pay $18.5 million fine to end New York probe

SourceCNBC
SectorFinancial Markets
CountryMiddle east

Cryptocurrency firms Tether and Bitfinex reached an agreement with the New York attorney general's office to pay an $18.5 million fine to settle a legal dispute.The state's top law enforcement official had been investigating the firms over allegations that they moved hundreds of millions of dollars to cover up the apparent loss of $850 million of commingled client and corporate funds. Tether and Bitfinex — a popular digital currency exchange — are owned by the same company, Ifinex.Tether and Bitfinex will be required to cease trading activity with New Yorkers and submit quarterly transparency reports, the attorney general's office said. It's a major development in the crypto industry and concludes a long-running legal battle that started in April 2019. What is Tether? Tether is the company behind a well-known "stablecoin" of the same name. That token is meant to be backed one-to-one by U.S.

dollars, the idea being that it's much more stable than most digital coins which have huge price swings.Many...read more...