CFTC Finds No Issues With Tether’s Operations, But Imposes $41M Fine

2 mins
16 October 2021, 13:16 GMT+0000
Updated by Ryan James
16 October 2021, 13:16 GMT+0000
In Brief
  • Tether is in the clear with the U.S. Commodity Futures Trading Commission, according to a recent order.
  • The order recognized resolved issues and updated terms of service from early 2019.
  • This comes only a week after the CEO of Tether deleted his Twitter in light of an investigative report.
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 The U.S. Commodities Futures Trading Commission released an order in which it claimed no issues with Tether’s current operations. 

In response to the order from the CFTC, Tether released its own statement on the matter. Tether reiterated the fact that the CFTC found no grievances against the company. In addition, it said the order recognized issues pertaining to Tether’s reserves were “fully resolved when the terms of service were updated in February 2019.” However, the CFTC had stated in its own statement that it had fined Tether $41 million over claims that the Tether stablecoin (USDT) was fully backed by U.S. dolalrs.

Tether repeated its stance that it continually maintains fully-backed reserves. According to the CFTC order, there were no findings which disprove this claim. Moreover, it highlighted no CFTC finding of Bitfinex-related violations after December 2018. 

In its closing, the company stressed its plans for earning the confidence of users and continued transparency. 

Tether’s Troubled Past

Despite the cleared name with the U.S. Commodities Futures Trading Commission, Tether has its share of inquiries. Just last week, the company’s CEO vanished off of Twitter in light of an investigative report into recent Tether activities. 

The report claims Tether holds commercial papers of Chinese firms, including crisis-stricken Evergrande. However, Tether denies this claim and all related. 

In the summer the U.S. Department of Justice launched a fraud-related probe on Tether executives.  The issues stemmed back to when Tether was still developing. Federal prosecutors were particularly concerned with whether Tether concealed from banks that transactions were linked to crypto. Once again, the company denied all claims and went so far as to call them “stale”.

Nonetheless, a month later Tether revealed a 65 billion all-time high of its reserves of USDT. On Twitter, reactions from the crypto community wavered and included some hostile responses. However, this latest order from the CFTC is a small victory in the company’s pile of inquiries. 

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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.