CFTC slaps Tether and Bitfinex with a combined $42.5 million fine By Cointelegraph

On Oct. 15, the Commodity Futures Trading Commission, or CFTC, handed sister crypto companies and Bitfinex fines totaling $41 million and $1.5 million, respectively, citing violations of the Commodity Exchange Act, or CEA, and of a prior CFTC order.

The regulator has found that Tether, the firm behind an eponymous stablecoin, has only held sufficient fiat reserves to back the dollar-pegged asset for 27.6% of time during the 26-month period under review between 2016 and 2018. The agency also stated that Tether violated the law by holding part of the reserves in non-fiat financial instruments, as well as by comingling operational and reserve funds.