- Cantor Fitzgerald pays $6.75 million SEC penalty for SPAC-related misconduct.
- The firm made misleading statements about merger target discussions in IPO filings.
- Two SPACs under Cantor Fitzgerald’s control raised $750 million before merging with View, Inc. and Satellogic Inc.
- The settlement comes as Cantor Fitzgerald maintains significant ties to Tether, holding a $600 million stake.
- CEO Howard Lutnick assumes leadership role in Donald Trump‘s Commerce Department.
Cantor Fitzgerald, a major Wall Street broker with substantial cryptocurrency ties through Tether, agreed to a $6.75 million settlement with the Securities and Exchange Commission over charges of misleading investors in special purpose acquisition company (SPAC) filings.
SPAC Disclosure Violations
The SEC’s investigation revealed that Cantor Fitzgerald made false statements in public filings for two SPACs – CF Finance Acquisition Corp. II and CF Acquisition Corp. V. According to SEC Acting Director Sanjay Wadhwa, the firm claimed no prior contact with potential merger targets while actively engaging in "substantive discussions with several private companies regarding a potential merger."
The SPACs, which are shell companies created specifically for merging with private entities, collectively raised $750 million before combining with:
- View, Inc.
- Satellogic Inc.
Tether Connection and Leadership Changes
The penalty comes amid Cantor Fitzgerald’s deepening involvement in the cryptocurrency sector. A Wall Street Journal investigation found the firm holds:
- A 5% stake in Tether valued at approximately $600 million
- Management responsibility for the majority of Tether’s $134 billion in assets
CEO Howard Lutnick, while maintaining his position at Cantor Fitzgerald, has taken on a new role as co-chair of Donald Trump’s Commerce Department transition team. A company spokesperson stated to CNBC that "no investor was ever harmed by the alleged issues described in the order."
The SEC settlement documents indicate Cantor Fitzgerald neither admitted nor denied the allegations while agreeing to pay the civil penalty.
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