Bitfinex and Tether’s settlement with the Office of the New York Attorney General, or NYAG, resulted in the two companies paying $18.5 million for damages and shall now submit periodic reports regarding their reserves.
To further explain, the settlement mandates Bitfinex and Tether to report promptly with NYAG about their present reserve budget and status and any transactions made between them. Furthermore, the two companies are also obligated to supply public reports regarding their cash and non-cash reserves. Last but not least, the settlement orders for both Bitfinex and Tether to stop servicing in New York.
According to the NYAG, Bitfinex and Tether need to submit such reports each quarter for two years.
The lawsuit addressed by the NYAG to Bitfinex and Tether alleges that reserves did not fully back its USDT coins at particular periods. Despite agreeing to pay the hefty fine, Tether admits to no wrongdoings.
According to Tether, the settlement it agreed to pay should not be seen by the public as it recognizing something it did wrong. Instead, it encapsulates its desires to put the controversial matter behind and focus on the business’ future. Tether then expressed its gratitude to their customers that stood beside them throughout the tough tribulations brought by NYAG’s lawsuit.
The BTC industry sees Tether’s settlement with the NYAG as a positive matter
Coin Metrics’s co-founder, Nic Carter, commented on this development by stating that he felt encouraged by the aforementioned settlement as it confirms that the critics’ claims are totally off base. He adds that he is now looking forward to Tether’s next move at now being more transparent.
All in all, Carter believes that Tether’s settlement with NYAG will be for the betterment of the whole crypto industry. For the next two years, Tether has the chance to prove to the world the legitimacy of the sector, thus, boosting the public’s confidence.