SEC Fines Cantor Fitzgerald $6.75 Million Over Misleading SPAC Statements

According to Odaily, the United States Securities and Exchange Commission (SEC) has imposed a $6.75 million fine on Cantor Fitzgerald, a primary asset custodian for Tether. The penalty arises from misleading statements made to investors in connection with two Special Purpose Acquisition Company (SPAC) projects. These projects 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.