Bitfinex and Tether will pay $18.5 million in damages according to a settlement agreement with the Office of the New York Attorney General (NYAG). The NYAG has been investigating the two companies since April 2019.
In addition to the terms of the settlement, Bitfinex and Tether would share details of their reserves with the authority. The settlement states that the two companies to be transparent with their budget and reserve status. Also, the companies are required to reveal details of any ongoing transactions between themselves.
Bitfinex and Tether are to provide public records on their cash and non-cash reserves. According to the settlement agreement, reports on both reserves must be submitted every quarter for the next two years.
Furthermore, the NYAG also ruled that Bitfinex and Tether stop providing services to customers in New York.
Speaking to Cointelegraph, a Tether spokesperson said:
“Under the terms of the settlement, we admit no wrongdoing. The settlement amount we have agreed to pay to the Attorney General’s Office should be viewed as a measure of our desire to put this matter behind us and focus on our business.”
The spokesperson also expressed gratitude to Tether customers for being loyal and committed during the two-year investigation.
Image Credits: Pixabay