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U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

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Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#121

Post by deadmetheny »

jandrese wrote: post #85
brokensegue wrote: post #78

Earlier quoted context omitted.

For a different perspective, I would say their problem is integration with the "real world" with constrains that bitcoin wasn't designed for.

What use is a currency (or commodity!) that you can't convert into a good or service? It seems like a fundamental problem if the theoretical advantages of a currency are lost the instant you try to use it to buy something. Otherwise we're just wasting gigawatts of electricity to print Monopoly money.

>Otherwise we're just wasting gigawatts of electricity to print Monopoly money.

The sooner people realize this is exactly what is happening, the better.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#122

Post by andrewla »

spookthesunset wrote: post #105
andrewla wrote: post #88

Earlier quoted context omitted.

You can exchange USDT for fiat, on demand, for exactly 1 USD/USDT, but only at Bitfinex. For bank wires, they charge a .1% fee, so technically I guess 0.999 USD for each 1 USDT. For verified customers, there is no withdrawal limit. Kraken offers a USD/USDT market that allows you to obtain fiat for your USDT, and the price stays fairly stable but the liquidity is low (thus slippage is high). It's currently trading at…

> You can exchange USDT for fiat, on demand, for exactly 1 USD/USDT, but only at Bitfinex My understanding is this isn't the case. My understanding is Bitfinex will take your USD and convert to USDT which you can then use to buy crypto. But it won't take your USDT and turn it back into dollars. In fact, my understanding is the only way to turn USDT back into USD is either directly through Kraken or indirectly through…

As a US citizen, I can no longer access Bitfinex. My personal experience, when I could, is that you are never exposed to USDT on the site at all except as an option to transfer your deposited USD to another exchange via tether. They may have changed that, but I don’t know.

As for withdrawing, you can’t withdraw to the US any more, but you can still make international USD wires to banks in other jurisdictions, specifically Taiwan and Hong Kong. I have not heard anything contradicting this, and have seen a fair bit confirming it.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#123

Post by gruez »

spookthesunset wrote: post #105
andrewla wrote: post #88

Earlier quoted context omitted.

You can exchange USDT for fiat, on demand, for exactly 1 USD/USDT, but only at Bitfinex. For bank wires, they charge a .1% fee, so technically I guess 0.999 USD for each 1 USDT. For verified customers, there is no withdrawal limit. Kraken offers a USD/USDT market that allows you to obtain fiat for your USDT, and the price stays fairly stable but the liquidity is low (thus slippage is high). It's currently trading at…

> You can exchange USDT for fiat, on demand, for exactly 1 USD/USDT, but only at Bitfinex My understanding is this isn't the case. My understanding is Bitfinex will take your USD and convert to USDT which you can then use to buy crypto. But it won't take your USDT and turn it back into dollars. In fact, my understanding is the only way to turn USDT back into USD is either directly through Kraken or indirectly through…

> But it won't take your USDT and turn it back into dollars.

that's... unlikely. mainly because if that were true, nobody would want to sell anything at bitfinex, and cryptocurrency prices there would skyrocket. this happened at mtgox when they halted withdraws, BTC prices skyrocketed there.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#124

Post by moduspol »

machinecontrol wrote: post #19
SirensOfTitan wrote: post #12

Earlier quoted context omitted.

How is this related? USDT is effectively a centralized currency. Bitfinex has always been shady. Are you saying that exchanges that accept USDT will get hit hard by this?

If USDT goes to zero, every exchange that trades it becomes immediately insolvent.

Exchanges don't actually hold the things they're trading. They're just matchmakers who take a percentage when trades occur.

Anything creating high volume benefits exchanges, even if that volume is everyone trying to sell their tethers for other crypto.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#125

Post by onewhonknocks »

They updated the article several hours later with:

'The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information.'

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#126

Post by jerkstate »

brokensegue wrote: post #74
ceejayoz wrote: post #22

Earlier quoted context omitted.

C'mon, say the "This is good for Bitcoin!" thing.

which is odd because I thought the libertarian dystopia that bitcoin is pushing us towards abhors this kind of regulatory interference

those libertarians have been expecting this and have traded their tether-pumped btc for gold, land, etc.

it's the late to the game profit seekers who have bought in over the past few months who will get killed by this. even if the tether founders have made off with whatever cash deposits they had and there's nothing in the vault, cryptocurrencies will still have value and will rise again.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#127

Post by gruez »

ceejayoz wrote: post #56
js2 wrote: post #51

Earlier quoted context omitted.

Here’s what I don’t understand. You can exchange bitcoins for fiat currency. But afaik you can’t exchange USDT for fiat. So why is anyone willing to take the risk of holding on to USDT? Why are any exchanges even willing to touch it?

It lets the exchanges avoid dealing with USD, which they believe (IMO wrongly, but hey) exempts them from know-your-customer laws. A lot of Coinbase's customer service issues stem from KYC laws and the verification it requires. Some of them are being very squirrely with their users, telling you your "USD" balance which is actually USDT. Some may believe it's a fraud, but be happy to benefit from the apparent boost it…

>they believe (IMO wrongly, but hey) exempts them from know-your-customer laws.

but you need to be verified on bitfinex to withdraw both tether and (real) USD.

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#128

Post by krisives »

jandrese wrote: post #80
Animats wrote: post #73

The SEC took much stronger action with AriseBank.[1] Emergency asset freeze. Receiver appointed. ICO shut down. The SEC alleges AriseBank "falsely stated that it purchased [a Federal Deposit Insurance Corporation]-insured bank which enabled it to offer customers FDIC-insured accounts." Clearly, the SEC has had it with people running these huge scams. [1] https://www.sec.gov/news/press-release/2018-8

At least if you're absolutely blatant about your lies. One quick call to the FDIC and it should have been clear that they were spewing bullshit that might come back to haunt the government.

Let’s throw a wrench in here, will they go after Athene he purposely called his “scam coin” and is claiming everyone knew it was a scam

Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether

#129

Post by g09980 »

onewhonknocks wrote: post #125

They updated the article several hours later with: 'The U.S. Commodity Futures Trading Commission sent subpoenas on Dec. 6 to virtual-currency venue Bitfinex and Tether, a company that issues a widely traded coin and claims it’s pegged to the dollar, according to a person familiar with the matter, who asked not to be identified discussing private information.'

This should be much more visible. The market is panic selling on effectively old news.
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