Bitfinex / Tether
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anchored·ngEVhi…5xKXSummary
Bitfinex is a cryptocurrency exchange and Tether (USDT) is the world's largest stablecoin by market capitalization, both operated under the parent company iFinex Inc., incorporated in the British Virgin Islands. The two entities have faced multiple significant regulatory actions, including an $18.5 million settlement with the New York Attorney General over alleged concealment of an $850 million loss, a $42.5 million CFTC fine for misrepresenting USDT reserve backing, and an ongoing DOJ bank-fraud investigation. Tether's USDT reached approximately $188 billion in circulation as of May 2026, and the company engaged KPMG for its first full reserve audit in March 2026.
Connected Entities
6 entities · 60 linked investigations- Bitfinex Hack→mentioned with→Bitcoin(60%)
- Binance→mentioned with→Tether(60%)
- Tether→mentioned with→Bitcoin(60%)
- Bitfinex / Tether→mentioned with→Bitfinex Hack(80%)
- Tether→mentioned with→Bitfinex / Tether(80%)
- QuadrigaCX→mentioned with→Bitcoin(60%)
- Bitfinex / Tether→mentioned with→QuadrigaCX(60%)
- Bitfinex / Tether→mentioned with→Binance(60%)
- Bitfinex / Tether→mentioned with→Tether(70%)
- Bitfinex / Tether→mentioned with→Bitcoin(60%)
- + 1 more
Timeline(18 events)
2012
Bitfinex founded by Raphael Nicolle; Jean-Louis van der Velde joined as CEO in 2013.
Bitfinex - WikipediaNovember 2014
Tether (originally Realcoin) launched as the first fiat-backed stablecoin, pegged 1:1 to the U.S. dollar.
Tether (cryptocurrency) - Wikipedia2 June 2016
CFTC issues an order against Bitfinex prohibiting it from offering off-exchange financed retail commodity transactions to ineligible U.S. customers.
CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million2 August 2016
Bitfinex hacked; 119,756 BTC (approximately $72 million at the time) stolen. Bitfinex imposes a generalized ~36% haircut on all user balances, issuing BFX tokens as IOUs.
2016 Bitfinex hack - Wikipedia3 April 2017
Bitfinex redeems all outstanding BFX tokens at full face value ($1 per token), completing repayment to affected customers within approximately eight months of the hack.
2016 Security Breach Bitcoin Recovery FAQ - BitfinexJuly 2017
NYAG investigation later found that starting no later than mid-2017, Tether had no access to banking anywhere in the world, holding no effective reserves to back USDT.
Attorney General James Ends Bitfinex's Illegal Activities in New York - NYAG25 April 2019
New York Attorney General's Office files action against iFinex, alleging Bitfinex used Tether reserves to conceal an $850 million loss caused by funds seized from Crypto Capital Corp.
NY AG's $850M Probe of Bitfinex, Tether Ends in an $18.5M Settlement - CoinDeskOctober 2019
SDNY indicts Crypto Capital principal Oz Yosef on three criminal counts including conspiracy to commit bank fraud and operating an unlicensed money transmitter.
Crypto Capital Exec Indicted on Three Criminal Counts in NY Court - CoinTelegraph23 February 2021
NYAG settlement announced: Bitfinex and Tether pay $18.5 million, accept permanent ban from serving New York customers, and agree to quarterly reserve disclosure reporting.
Cryptocurrency firms Tether and Bitfinex agree to pay $18.5 million fine to end New York probe - CNBC26 July 2021
Reports emerge that the DOJ has opened a criminal investigation into Tether executives for alleged bank fraud in the early days of the stablecoin's operations.
DOJ reportedly investigates crypto company Tether for possible bank fraud - CNBC15 October 2021
CFTC orders Tether to pay $41 million and Bitfinex to pay $1.5 million for reserve misrepresentation. CFTC finds USDT was only fully backed on 27.6% of days sampled between 2016 and 2018.
CFTC Orders Tether and Bitfinex to Pay Fines Totaling $42.5 Million - CFTC8 February 2022
U.S. federal authorities arrest Ilya Lichtenstein and Heather R. Morgan on conspiracy to launder approximately 119,756 BTC from the 2016 Bitfinex hack; approximately $3.6 billion in bitcoin seized.
US Officials Seize $3.6B in Bitcoin From 2016 Bitfinex Hack - CoinDesk31 October 2022
DOJ bank-fraud investigation into Tether transferred to U.S. Attorney for the SDNY for a fresh review after alleged months of stagnation.
US Tether Bank Fraud Investigation Changes Hands Within the DOJ - CoinDesk3 August 2023
Ilya Lichtenstein and Heather Morgan both plead guilty to one count of conspiracy to commit money laundering in connection with the 2016 Bitfinex hack.
2016 Bitfinex hack - Wikipedia13 October 2023
Tether promotes CTO Paolo Ardoino to CEO; Jean-Louis van der Velde transitions to an advisory role for Tether while retaining his position as CEO of Bitfinex.
Tether Promotes CTO Paolo Ardoino to CEO - CoinDesk15 November 2024
Ilya Lichtenstein sentenced to five years in federal prison; Heather Morgan sentenced to 18 months in prison. Total funds recovered from the Bitfinex hack estimated at approximately $10 billion.
Bitfinex Hacker Sentenced in Money Laundering Conspiracy Involving Billions in Stolen Cryptocurrency - DOJ2025
Tether announces plans to relocate its corporate domicile to El Salvador, establishing its first official head office there.
Tether moves HQ - CoinGeek27 March 2026
Tether engages KPMG to conduct its first full financial statement audit of approximately $185 billion in USDT reserves; PwC engaged to prepare internal systems ahead of planned U.S. market expansion.
Tether hires KPMG for USDT audit, brings in PwC as it gears up for U.S. expansion - CoinDeskDecision Log
- slot 445504651 · hash C5oSrD4EBopsPqCmpqTiuByJNAXL3M1RL5su6zEjw8pV
- slot 426268204 · hash ERXFo5hpXjfLpUqveSdYNoK8BRozhKLtyRarg1aHAx6g
- slot 426268201 · hash H2xKoczFuSwFyE3wCKE5jGnXjnfJ6Ld1pWC9dvFSaExp
- slot 423426449 · hash BqjckzVhNWhEo935h42qQRSVigqWMMSM9oFYf4ZxRZBo
This investigation is cryptographically anchored to the Solana blockchain (4 decisions). 23 of 23 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/31/2026, 6:13:02 PM
last updated: 5/31/2026, 6:13:03 PM
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