The US Commodity Futures Trading Commission (CFTC) said in a statement that between June 2016 and February 2019, Tether misrepresented to customers and the cryptocurrencies markets that it had ‘sufficient US dollar reserves’ to back every token when, in fact, its reserves were not fully backed the majority of the time.
In addition, the CFTC said, Tether failed to disclose that it included unsecured receivables and non-fiat assets as part of its reserves, falsely telling investors it would conduct routine audits to show it maintained 100 % of reserves at all times, even though its reserves were not audited.
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