NY-AG v. Bitfinex and Tether

Bitfinex and Tether allegedly deceived clients and the market by overstating reserves and hiding approximately $850 million in losses. According to NY-AG, Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses. The NY-AG investigation found that iFinex — the operator of Bitfinex — and Tether allegedly 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. According to NY-AG, Bitfinex and Tether operated for years as unlicensed and unregulated entities, trading virtual currencies in the state of New York.

Summary generated from official New York Attorney General press release