“Concealing customer loss” Tether agrees with New York prosecutors to pay 20 billion won


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[Blockchain Today Reporter Jihye Han] It was confirmed that Bitfinex and Tether have reached an agreement with the New York Attorney General.

In April 2019, New York prosecutors filed a lawsuit against Tether. New York authorities prosecuted Tether, which is a stable coin,’Tether (USDT)’ and Bitfinex, a virtual asset exchange, on charges of inflicting huge financial losses to customers at the time and hiding them.

According to Cointelegraph reports, it is known that Bitfinex and Tether report their cash reserves and report transactions between the two companies as a condition of the agreement.

Accordingly, Bitfinex and Tether are required to pay a fine of $18.5 million (approximately 26.2 billion won) for causing damage to New York State and report their cash reserves on a regular basis in the future. It is also known that information on cash and non-cash holdings should also be informed to the public. Tether is required to report assets, including its cash reserves, on a quarterly basis over the next two years.

Also, Bitfinex and Tether cannot provide services to New York State consumers.

Previously, the New York Attorney General insisted in a lawsuit that Tether’s reserves were insufficient. In particular, for Bitfinex, it lost $85 million due to its previous partner, and claims that it started a credit transaction with Tether in order to compensate for this loss. Tether reported that the credit transaction had ceased, and this was confirmed by New York authorities. The lawsuit raised questions about Tether’s 2017 and 2018 reserves. It does not appear to have raised an issue with the 2021 reserves.

Given that Tader’s market cap is $35 billion, the $18.5 million fine doesn’t appear to be large.

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