Hit resistance....now let's break it..
Hit resistance....now let's break it..
Seems about right!
Its sister company, crypto exchange Bitfinex, was also hit with a $1.5 million fine by the CFTC.
Tether, the company behind the world’s biggest stablecoin, was today hit with a $41 million fine by the Commodity Futures Trading Commission.
The regulatory body claimed in a release that Tether made “untrue or misleading statements and omissions of material fact in connection with the U.S. dollar tether token (USDT) stablecoin.”
Tether’s sister company, Bitfinex, a cryptocurrency exchange, was also today hit with a $1.5 million fine for “illegal, off-exchange retail commodity transactions in digital assets.”
Tether Limited is the company behind Tether, the third biggest cryptocurrency by market cap. The digital asset is by far the most-traded cryptocurrency in terms of volume traded on exchanges.
It is a stablecoin, meaning it is pegged 1:1 with the U.S. dollar. This is supposed to make its value stable, as opposed to the value of cryptocurrencies like Bitcoin or Ethereum which regularly experience dramatic price swings.
But Tether is a controversial asset: Tether claims its coins are backed by real U.S. dollars held in reserves—though its critics say this isn’t true. The company has previously been slow to release its audits.
And today, the CFTC alleges that Tether made false claims about the backing of the asset. Between June 1, 2016 to February 25, 2019, Tether’s coins were not fully-backed by U.S. dollars for most of the time, the CFTC claims.
“The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained ‘100% reserves at all times’ even though Tether reserves were not audited,” the release said.
Tether only held sufficient fiat reserves in its accounts to back the tokens in circulation for only 27.6% of the days in a 26-month time period from 2016 through 2018, the CTFC alleged. Tether also used “unregulated entities and certain third-parties” to hold funds, the body added.
Bitfinex, the CTFC said, undertook unlawful commodity transactions from March 1, 2016 through at least December 31, 2018. The exchange allegedly let Americans buy and sell Bitcoin and Tether without having registered with the CTFC.
CTFC acting chairman Rostin Behna said: “The CFTC will continue to take decisive action to bring to light untrue or misleading statements that impact CFTC jurisdictional markets.”
That said, the previous 4 Weekly Closes below/inside the red box preceded rejections
Confirmation is needed
This means less conxevity to the downside and shorts are more likely to be squeezed as they no longer have an inadvertent hedge via their collateral.
The professional NBA team – the Sacramento Kings – and the blockchain company that offers cloud computing services – Ankr – shook hands on a multi-year collaboration. Throughout the engagement, the two entities will produce educational content about the cryptocurrency space and blockchain technology.
The Kings’ New Crypto Endeavor
The National Basketball Association announced the news on its website. Apart from educating sports fans about the merits of the digital asset industry by hosting events and creating various projects, the Sacramento Kings and Ankr will also make an annual event at Golden 1 Center (the home of the sports club). There it will invite students and developers to learn about the developments in the crypto space.
Vivek Ranadivé – Chairman and Owner of the Sacramento Kings – aired his thoughts on the collaboration: “Sports can be a powerful platform to educate and embrace innovation. We are proud to partner with Ankr to further align our synergies around forward-thinking initiatives and provide fans educational opportunities about the crypto economy.”
In his turn, Chandler Song praised the desire of the NBA team to look forward to new technologies raising hopes that the initiative would “open a lot of new doors for both sports fans and the crypto community: “We have visited the Kings data center for crypto mining inside their facilities many times, and I admire the openness of the owner, Vivek, to embrace new technologies. We are aligned in this mission to promote applications of Web 3 technologies.”
Speaking of Ankr, it is a software platform and decentralized infrastructure provider. Founded in 2017, it focuses on the growth of Web3 – the third generation of internet services for websites and applications. Ankr’s protocol also supports over 50 proof-of-work chains.
Salaries in Crypto for The Players
The Sacramento Kings – one of the basketball teams that has won the NBA – has shown a pro-crypto stance for years. In 2014, it allowed fans to purchase tickets and merchandise products with bitcoin.
In April this year, Chairman Ranadivé announced another step towards further digital asset adoption. He said that all employees in the organization could choose whether they would like to receive their salaries in the form of bitcoin instead of the dollar: “I’m going to offer everyone in the Kings organization; they can get paid as much of their salary in bitcoin as they want, including the players.”
The Dallas Mavericks is another NBA team that accepts digital asset payments. In addition to Bitcoin, though, Mark Cuban’s club also allows settlements with Bitcoin Cash, Ethereum, Dogecoin, and more.