According to Odaily, the United States Securities and Exchange Commission (SEC) has fined Cantor Fitzgerald, Tether's primary asset custodian, $6.75 million. The penalty stems from misleading statements made to investors regarding two Special Purpose Acquisition Company (SPAC) projects, which collectively raised $750 million.
Sanjay Wadhwa, Acting Director of the SEC's Enforcement Division, highlighted that Cantor Fitzgerald repeatedly denied engaging with merger targets in public filings. However, it was revealed that the firm had been involved in substantial merger negotiations with several private companies—this discrepancy between public statements and actual activities led to the SEC's enforcement action.
The SEC's decision underscores the importance of transparency and accuracy in communications with investors, particularly in the context of SPACs, which have gained significant attention in recent years. The fine serves as a reminder to financial institutions about the critical need to maintain integrity and honesty in their disclosures to the public.