2/23, 5:11 PM (Source: TeleTrader)
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Tether, Bitfinex to pay $18.5M to settle dispute

Cryptocurrency companies Bitfinex and Tether agreed to pay an $18.5 million fine in order to settle a legal dispute related to covering up $850 million in losses, according to New York Attorney General's press release published on Tuesday.

"An investigation by the Office of the Attorney General found that iFinex - the operator of Bitfinex - and Tether made false statements about the backing of the “tether” stablecoin, and about the movement of hundreds of millions of dollars between the two companies to cover up the truth about massive losses by Bitfinex," the statement explained.

Under the settlement, the companies are obliged to halt trading activity with New Yorkers, as well as forced to pay $18.5 million in penalties, in addition to requiring a number of steps to increase transparency.

Breaking the News / ND