Now that the NYAG probe is settled, what happens next for Bitfinex and Tether? First, they must pay an $18.5M fine and immediately cease any trading activity with New Yorkers, ending years of unlicensed and unregulated trading of virtual currencies in the state, according to NYAG.
Additional requirements through February 2023:
- On a quarterly basis, the companies must submit regular reports to NYAG to ensure compliance with trading prohibitions.
- At least once per quarter, the companies must detail how they have segregated corporate and client accounts, including the segregation of government-issued and virtual currency accounts.
- The companies must report transfers of assets between Bitfinex, Tether, and their entities.
- Tether must offer public disclosures of the types of assets backing tethers, including any loans or receivables to or from affiliated entities.
- The companies must also report any use of non-bank "payment processors" or other entities used to transmit client funds.
- A multi-billion-dollar class-action lawsuit, "In re Tether and Bitfinex Crypto Asset Litigation" (case 1:19-cv-09236 in the U.S. District Court for the Southern District of New York) will continue.
Click to tweet the following text (you can edit it before sending): $USDT Bitfinex and Tether agree to settle the NYAG probe with a small fine and various reporting covenants for two years.
