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2/23, 2:01 PM (Source: TeleTrader)
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AG bans Bitfinex, Tether from operating in NY

Crypto exchange platform Bitfinex and stablecoin Tether are being barred from trading with New Yorkers, the office of Attorney General Letitia James (pictured) stated on Tuesday.

The ban is a result of a probe that found that at times Tether didn't have enough funds or ways to secure them, meaning it was unable to back tethers in circulation at the rate of one dollar for every coin. In addition, the two companies have been found to have misled clients regarding $850 million in missing funds.

"Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines. Tether's claims that its virtual currency was fully backed by US dollars at all times was a lie," James said.

Breaking the News / MD