Bitfinex controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
New York Attorney General settlement
Bitfinex and iFinex agreed to an $18.5 million settlement concerning allegations about Tether backing disclosures and transfers between affiliated companies, alongside restrictions on activity with New York residents.
2021
CFTC fines Bitfinex $1.5 million
Fine or penalty
The CFTC announced that Bitfinex, a crypto exchange affiliated with Tether, was fined $1.5 million for permitting retail transactions by American residents.
Source excerpt
The CFTC also announced that Bitfinex, a crypto exchange affiliated with Tether, was fined $1.5 million for permitting retail transactions by American residents.
2021
Bitfinex and Tether settle with New York Attorney General
Settlement
Bitfinex and Tether settled a case with the New York Attorney General’s office, agreed to pay an $18.5 million fine, and were barred from trading with New York residents. The Attorney General accused the companies of concealing losses and making false statements about Tether’s backing; the article reports that the settlement required disclosures from Tether.
Company response
Denial — Tether
Tether published a statement on Tuesday “admitting to no wrongdoing.” It argued:
Source excerpt
The settlement agreement reached with iFinex Inc., BFXNA Inc., and BFXWW Inc. (collectively, Bitfinex), and Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited (collectively, Tether) resolved the complaint lodged against them for falsely claiming that their virtual currency was fully backed by U.S. dollars.
Yesterday’s agreement requires Bitfinex and Tether to discontinue trading activity with New Yorkers and pay the state $18.5 million.
Bitfinex and Tether have been banned from operating in New York and must pay a fine of $18.5 million as part of a settlement with the New York Attorney General’s (NYAG’s) office over a case dating back to 2019.
2019
Crypto Capital and Tether reserve allegations
New York authorities alleged that Bitfinex used funds associated with Tether to conceal an $850 million shortfall linked to Crypto Capital Corp.
2016
2016 Bitcoin theft
Hackers stole 119,756 bitcoins from Bitfinex customer wallets. The exchange halted activity, reduced balances, and issued recovery tokens before later reimbursing affected token holders.
2015