The United States Commodities Futures Trading Commission issued an order in which it did not state any problems with Tether’s current operations.
In response to the CFTC’s order, Tether released its own statement on the matter. Tether reiterated that the CFTC found no grievances against the company. Further, he said the ordinance recognized that Tether’s reserve issues were “fully resolved when the terms of service were updated in February 2019.” However, the CFTC had said in its own statement that ‘she fined Tether $ 41 million for claiming that Tether stablecoin (USDT) was backed entirely by US dollars.
Tether reiterated its position that it continually maintains fully guaranteed reserves. According to the CFTC order, there was no finding that disproves this claim. Additionally, it did not highlight any CFTC findings regarding Bitfinex-related violations after December 2018.
In its closing, the company outlined its plans to gain user trust and continued transparency.
Tether’s troubled past
Despite the name approved by the U.S. Commodities Futures Commission, Tether has its share of investigations. As recently as last week, the company’s CEO disappeared from Twitter in light of an investigative report into Tether’s recent activity.
The report claims that Tether holds commercial papers from Chinese companies, including Evergrande in crisis. However, Tether denies this claim and everything related to it.
Over the summer, the US Department of Justice launched a fraud investigation into Tether executives. The issues dated back to when Tether was still in development. Federal prosecutors were particularly concerned about whether Tether was hiding from banks that the transactions were crypto-related. Once again, the company denied all claims and went so far as to call them “outdated.”
Nonetheless, a month later, Tether revealed an all-time high of $ 65 billion in its USDT reserves. On Twitter, reactions from the crypto community wavered and included some hostile answers. However, this latest CFTC order is a small victory in the company’s pile of inquiries.
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