This is going to open up a whole can of worms now and not limited to New York. They basically admitted Tether is unbacked and is fraudulent.

    “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system.

This will almost certainly involve the DOJ & SEC but because wire fraud and money laundering is present, it will involve other federal agencies as well on top of the lawsuits that will be happening in multiple states.