Cftc Tether Settlement 2021 event
Overview
The Commodity Futures Trading Commission imposed a $41 million civil monetary penalty on Tether on October 15, 2021, alongside a cease-and-desist directive, stemming from false representations that its USDT stablecoin was entirely collateralized by US dollars. The regulator determined that, from June 1, 2016 through February 25, 2019, Tether's reserves were not wholly fiat-backed for most of that span, containing unsecured receivables and non-fiat instruments, and that its assertions of regular professional audits were untrue, despite having claimed since 2014 that each token was 100% fiat-supported. In the same enforcement action, Bitfinex, a related exchange, was fined $1.5 million for conducting illegal off-exchange retail commodity transactions and for breaching a prior order, resulting in a combined penalty of $42.5 million.
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Frequently asked questions
What is Cftc Tether Settlement 2021?
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What type of entity is Cftc Tether Settlement 2021?
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Sources
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