US Commodities and Futures Commission, one of the US financial regulators (CFTC), both Bitfinex cryptocurrency exchange and to Tether fined him.
Tether has previously fought against US regulators and courts, but escaped with small fines.
Although the current fine seems small compared to Tether’s market value, it seems that the main event is that this penalty is not expected.
The federal commodity regulator, emphasizing that the USDT stablecoin is not always 100% indexed, stated that the Bitfinex cryptocurrency exchange also overturned a previous decision.
CFTC Fines $42.5 Million
In a press release issued by the CFTC, he emphasized that Tether does not back USDT with 100% collateral, as it claims.
Bitfinex cryptocurrency exchange was also accused of violating the law known as CEA.
It is stated that from 2016 to 2018, USDT, Tether’s stablecoin, was supported by 100% for only one quarter.
Back then, the company’s collateral did not consist of complex and illiquid assets as it is now. In the press release, it was emphasized that Tether did not have any collateral as it claimed.
The New York Attorney General’s Office, which had attempted a lawsuit before, reached similar findings in its report and fined it.
Bitfinex CTO Paolo Ardoino has not yet made a statement on social media.
The penalty for the old periods and the absence of any sanctions now shows that Tether is acting more transparently now.