InstaForex

October 18, 2021

Tether (USDT), Bitfinex Fined Over RM176 Million!

 The Commodity Futures Trading Commission (CFTC) has imposed fines worth more than $ 42.5 million (RM176.7 million) on Bitfinex and Tether on Friday local time.


Based on the report, each faced an error:


Tether

On the offense of making misleading and unrelated statements stablecoin, USDT.

Tether has claimed the USDT is fully backed by the US dollar whereas no private entity can confirm such reserves.

Fine: $ 41 million (RM170.4 million)

Bitfinex

For an offense involving illegal off -exchange retail commodity transactions.

Operate as a futures commission merchant (FCM) without being registered with a legal supervisor.

Fines: $ 1.5 million (RM6.2 million), as well as being required to implement and maintain additional systems for the purpose of preventing illegal retail commodity transactions.

For the record, the USDT actually supported reserves by only a quarter for the 26-month period between 2016 and 2018.



The rest of that, Tether was found to be raising reserve funds with corporate funds, and keeping those savings in the form of ‘non -cash products’.


At the time of writing, the USDT trading record in 24 hours has declined by almost 11%.


Meanwhile, the order against Bitfinex is related to the implementation of restrictions on the exchange's access to US consumers, including offenses against the law launched in December 2018.


For the record, Bitfinex and Tether were fined $ 18.5 million in early 2021 following a case that continued since 2019.