“Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.”
The New York AG says Tether claimed every coin was backed by a dollar and that the claim was false. Hundreds of millions moved between Tether and Bitfinex to cover losses. The penalty is $18.5 million and a ban on New York customers. Tether keeps operating everywhere else, and the crypto market keeps treating it as cash.