There has been a settlement between the New York Attorney General’s office (NYAG) and Bitfinex in the recent lawsuit on the question of how far Tether is backed by USD.
As a result, Bitfinex will have to pay an 18.5M $ fine and provide quarterly reports on the composition of the currencies backing their stable coin USDT.
Among other things, Tether was accused of making up for losses incurred by the Bitfinex exchange in 2017 by generating new USDT. Bitfinex, on the other hand, takes the view that these were only used as temporary liquidity.
In the future, more transparency is to be created through the regular publication of the collateral.