As was reported earlier today, Tether – the leading dollar-based stablecoin (USDT), along with crypto exchange Bitfinex, were the targets of enforcement actions issued by the US Commodity Futures Trading Commission (CFTC). Both platforms are required to pay penalties with Tether paying $41 million and Bitfinex coughing up a mere $1.5 million. Tether was alleged to have relied upon unregulated entities and other third-parties to hold funds comprising reserves as well as comingling these funds with Bitfinex’s operational and customer funds.
Following the announcement by the CFTC, Tether has issued a statement claiming there was no finding that Tether tokens were “not fully backed at all times.” Tether explains that the issue was that the “reserves were not all in cash and all in a bank account titled in Tether’s name, at all times.”
Tether further states it has always maintained adequate reserves and has never failed to satisfy a redemption request.
Tether says:
“As the Order recognizes, these issues were fully resolved when the terms of service were updated in February 2019.”
The statement is available here.