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Tether

Tether fined $41M by CFTC for “untrue” dollar reserve claims

Tether, the world’s largest stablecoin, has incurred the wrath of the Commodity Futures Trading Commission CFTC.

The watchdog confirmed in a statement today that Tether Holdings Limited (the company behind Tether coin) has been ordered to pay a civil monetary penalty of $41 million for “untrue or misleading statements and omissions of material fact in connection with the U.S. dollar tether token (USDT) stablecoin.”

Tether is the third biggest token in the world based on trading volume. It is used to purchase other digital currencies and hedge against the volatility of the crypto market.

Tether

Another crypto entity owned by Tether’s parent company, Bitfinex, was slammed with a $1.5 million fine.

So far, Bitfinex has remained silent on the allegation. However, Tether, in a half-hearted attempt to wash the blame off its hands, released a statement on its website.

Tether insisted that its tokens were backed as it claimed during interrogation, saying that the fine was imposed because the CFTC found that some of the dollar reserves were kept in bank accounts that were not open in Tether’s name.

NEXT: Japan’s CBDC must co-exist with other payment methods, Central Bank Official says

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Godwin is a multi-faceted writer. He covers the latest and most significant news in the crypto industry for Newsbsc. Aside from his work here, he writes exceptional SEO optimized web contents for other websites in different sectors.

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