The U.S. Commodities Futures Trading Commission released an order in which it claimed no issues with Tether’s current operations. Even though CFTC had no complaints against the company, Tether was fined $41 million over "misleading" claims that USDT was fully backed by the US- Dollar.
In response to the order from the CFTC, the largest stablecoin issuer released its own statement on the matter. Tether reiterated the fact that the regulator found no grievances against the company. In addition, they claimed the order recognized issues pertaining to Tether’s reserves were fully resolved when the terms of service were updated in February 2019.
Reserves of Tether's stablecoin
Tether repeated its stance that it continually maintains fully-backed reserves. According to the CFTC order, there were no findings that disprove this claim. Moreover, it highlighted no CFTC finding of Bitfinex-related violations after December 2018. In its closing, the company stressed its plans for earning the confidence of users and continued transparency.
Despite the cleared name with the U.S. Commodities Futures Trading Commission, Tether has its share of inquiries. Just last week, the company’s CEO vanished off of Twitter in light of an investigative report into recent Tether activities. The report claims Tether holds commercial papers of Chinese firms, including crisis-stricken Evergrande. However, Tether denies this claim and all related.
Previous court cases
In the summer the U.S. Department of Justice launched a fraud-related probe on Tether executives. The issues stemmed back to when Tether was still developing. Federal prosecutors were particularly concerned with whether Tether concealed from banks that transactions were linked to crypto. Once again, the company denied all claims and went so far as to call them stale.
Nonetheless, a month later Tether revealed a 65 billion all-time high of its USDT reserves. On Twitter, reactions from the crypto community wavered and included some hostile responses. However, this latest order from the CFTC is a small victory in the company’s pile of inquiries.