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Cantor Fitzgerald Settles SEC Charges for Misleading SPAC Statements

Cantor Fitzgerald, linked to cryptocurrency giant Tether, has agreed to pay a $6.75 million penalty to the SEC after being charged with making misleading statements through two SPACs it controlled during their IPOs, which collectively raised $750 million.

The SEC cited that Cantor repeatedly indicated in public filings that it had not approached any merger targets, despite engaging in substantive discussions with several companies, including those it eventually merged with.

These SPACs, CF Finance Acquisition Corp. II and CF Acquisition Corp. V, subsequently merged with View, Inc. and Satellogic Inc. respectively.

Acting Director of the SEC’s Enforcement Division, Sanjay Wadhwa, emphasized the deceptive nature of Cantor's filings.

Despite the severity of these charges, Cantor Fitzgerald neither admitted to nor denied the allegations but chose to settle by paying the civil penalty.

A company spokesperson asserted that no investor suffered harm due to the issues described, and expressed satisfaction with the resolution of the matter with the SEC.

Further, reports show Cantor's significant involvement with Tether, holding a major share of Tether’s assets and a 5% stake valued up to $600 million.

Interestingly, Cantor’s CEO, Howard Lutnick, has recently taken significant roles within Donald Trump’s Commerce Department and presidential transition team.

This case highlights the ongoing regulatory scrutiny faced by financial entities involved in complex merger and acquisition strategies within the crypto-linked financial sector.