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The company behind Tether’s “Token” was fined $ 41 million by US regulators | WGN Radio 720

The company behind digital tokens, called tethers, will pay $ 41 million to resolve claims that have misled investors by claiming that the tokens are always fully backed by US dollars and other fiat currencies. I agreed.

The Commodity Futures Trading Commission has indicted Tether Holdings Limited on Friday for making false or misleading statements and omissions regarding its allegations. Specifically, U.S. regulators have stated that since launching the token in 2014, Tether Holdings has been a “stablecoin” whose value is fixed in fiat currencies such as the US dollar and the euro. I found that.

Stablecoin is a digital currency backed by real-world assets such as national currencies and other commodities. Unlike Bitcoin and other cryptocurrencies, Stablecoin is designed so that its value does not fluctuate significantly.

However, CFTC will provide sufficient US dollar reserves to support all tether tokens in circulation by tethers in the same amount of “corresponding fiat currency” from at least June 1, 2016 to February 25, 2019. We have determined that we have mistakenly told our customers and the market that we are maintaining. .. ”

The agency also did not disclose that Tether included unsecured receivables and non-statutory assets in its reserves, and that the company maintained the fiat currency reserves required to support Tether Tokens. I have found that I have falsely stated that I will undergo regular audits to prove that.

In a statement, Tether, headquartered in Hong Kong and headquartered in Santa Monica, California, said CFTC’s findings were “completely resolved” in February 2019 when the company updated its terms. He said it was related to certain disclosures about gold. service.

“When it comes to tether reserves, we haven’t found that tether tokens weren’t always fully backed up. They simply say that the reserves aren’t all cash, they’re all in a bank account titled Tether. That’s what the company says. “We always have sufficient reserves and have never failed to meet our redemption demands,” he said.

Separately, CFTC discovered that the cryptocurrency trading platform trades illegal off-exchange retail products, including digital assets, with U.S. investors and operates as a futures trader without registration. After that, he ordered Bitfinex to pay a civil penalty of $ 1.5 million.

The company behind Tether’s “Token” was fined $ 41 million by US regulators | WGN Radio 720

Source link The company behind Tether’s “Token” was fined $ 41 million by US regulators | WGN Radio 720

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