Bitfinex and Tether have reached an agreement with the New York Attorney General in the landmark case against TetherNew York authorities said Tether misrepresented the degree of protection of USDT currencies with a fiat guarantee.
The settlement calls for Bitfinex and Tether to pay New York State $ 18.5 million in damagesas well as undergo regular reports on your reservationsThe terms of the agreement Force Bitfinex and Tether to report their current booking statusevery transaction between the two companies as well Make public reports on the specific composition of your cash and in-kind reservesQuarterly reports are required for the next two years.
Finally, The agreement also stipulates that Bitfinex and Tether must discontinue customer support in New York state.
As Cointelegraph previously reported, NYAG’s lawsuit alleged that Tether® was not fully covered by reserves at certain timesSpecifically, Bitfinex is said to have opened a line of credit with Tether to pay a deficit of $ 850 million for the bankruptcy of its former partner. Crypto Capital Corp.. Since then, The line of credit was closedas reported by Tether and confirmed by authorities. While the documents make specific statements about the status of the Tether Reserves in 2017 and 2018, Regulators appear to have no reservations about Tether’s reserve status in 2021.
The $ 18.5 million settlement penalty is now a very small fraction of the total existing USDT, which is now nearly $ 35 billion.
Cointelegraph reached out to Tether for comment but did not receive an immediate response. The article will be updated upon receipt of a response.