BREAKING: Tether Slapped with $41 Million Fine by CFTC

Tether, the leading stablecoin issuer, has been ordered to pay a $41 million civil monetary penalty by The Commodity Futures Trading Commission, according to a press release issued on Oct. 15. 

The company was accused of violating the Commodity Exchange Act (CEA) by making misleading statements about the USDT stablecoin being backed one-to-one by US dollars.    

The CFTC also fined simultaneously slapped iFinex, the parent company of the Bitfinex exchange, with a $1.5 million fine. 

Acting Director of Enforcement Vincent McGonagle says that these actions are meant to promote market integrity:     

As demonstrated by today’s actions against Tether and Bitfinex, the CFTC is committed to carrying out its statutory charge to promote market integrity and protect U.S. customers