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CFTC slaps Tether and Bitfinex with a combined $42.5 million fine By Cointelegraph



The Commodity Futures Trading Commission (or CFTC) was inaugurated on Oct. 15. HandledBitfinex and its sister companies were penalized $41m and $1.5m respectively for violations of the Commodity Exchange Act or CEA and a prior CFTC Order.

Tether, the company behind the stablecoin’s name, was found to have sufficient fiat reserves for the backing of the dollar-pegged assets only 27.6% of the time it had been under review. This period covers 2016-2018. Tether also violated the law, according to the agency. The reserves were held in both non-fiat instruments and operational funds.