Over the past year, cryptocurrency platforms Bitfinex and Tether have allegedly issued tethers as loans to investors, run an unregistered securities offering and conducted business in New York despite being banned from operating in the state.

Tethers have been issued unbacked as “loans” to certain investors, despite prior claims that the so-called stablecoin is backed “one to one” by dollars in an offshore bank account (Though executives now say it is “74 percent” backed).