New York Attorney General Shuts Down Bitfinex And Tether Trading in State; Groups Agree $18.5 Million Fine“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie," New York Attorney General Letitia James said as she shut down its trading in the state.
The State of New York shut down the the digital currency trading platform Bitfinex Tuesday, accusing it of hiding losses and deceiving clients, in a move that could have significant implications for bitcoin prices.
New York Attorney General Letitia James said Bitfinex claimed its so-called 'stablecoin', Tether, was backed by one-for-one holdings in U.S. dollars. However, James said iFinex, the Bitfinex platform operator "made false statements about the backing of the “tether” stablecoin, and about the movement of hundreds of millions of dollars between the two companies to cover up the truth about massive losses", which it pegged at $850 million.
iFiniex, Tether and related entities were ordered to cease trading and pay $18.5 million in penalties. The groups were also told to increase their reporting and transparency with respect to Tether's U.S. dollar backing.
https://www.thestreet.com/investing/new-york-ag-shuts-down-bitfinex-and-tether-trading-in-state ....
Controversial case emerging in new york where bitfinex was fined and tether is now banned.
I don't understand criticism towards tether's dollar backing. It may not be 100% backed at all times. But it enjoys a far greater backing than every asset on markets aside from bitcoin and precious metals.
It is hard to believe new york can seriously commit to fair review of cryptocurrencies when they ban tether on kneejerk reactionary whims rather than hard evidence.
