This is 2 months old.
U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
151–160 of 421 posts
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#152Earlier quoted context omitted.
I hear you and this whole situation is clearly shady af, but at the end of the day BTC is fungible with USD, so I'm not sure at this in and of itself is that big of an issue (besides any explicit legal concerns that I can't speak to). If you're providing a currency pegged to the USD, then selling tether for BTC might be one piece of a strategy to do this- The issue for me is more that no one knows what's happening to…
You're missing the point, OP is suggesting that Tether isn't really backed by USD. So instead of trading something backed by USD for BTC, they're just creating worthless IOUs and buying BTC (typically bidding it up on down days). It smells a lot like fraud.
The fact that they don’t publish financial statements that have been audited by a major accounting firm on a regular basis clearly indicates that the whole thing is a massive fraud.
Bernie Madoff’s operation sucked in billions for years and years. Were there an audit at any point, the scam would have been revealed.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#153Earlier quoted context omitted.
yes that's true. You can even see the tether printer and the sends of tether on the omni network. The omni network is a layer on top of bitcoin and is totally transparent
Can you show us where we can find these transactions?
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#154They 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.'
So when did the auditor quit? Before or after the subpoena? I wonder if the auditor made a 'noisy withdrawal', basically alerting the regulators that this company is fraudulent.
If I was auditing and obviously fraudulent operation, the easiest way to cover my ass would be to notify regulators immediately.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#155So, how does this work legally? Bitfinex isn't a U.S. based company and doesn't work with U.S. citizens. The article says where it's based is unknown. Does the CFTC have the authority to subpoena them? Is it because they're claiming Tether is USD pegged, so they gain authority because of their use of the dollar? Honestly just a curious question. (I'm not looking for snarky answers to the effect of "world police".)
If you touch United States dollars, then you are captured by United States regulators. The United States dollar system is only accessible via the federal reserve system, which is regulated by United States regulators.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#156They just updated the article that the subpoena was actually sent on December 6th. So this is already technically old news. Just more FUD being thrown around by news outlets that should know better.
“Old news” is news that merely reiterate facts that were already widely known.
News that makes new revelations that were not generally known about events in even the distant past is still new news, and last December isn't the distant past, anyway.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#157Earlier quoted context omitted.
This should be much more visible. The market is panic selling on effectively old news.
It's not “old news” if it wasn't publicly known in the past (and if the market had known it already, no one would be panic selling based on it.)
I'm just not sure why Bloomberg would choose to omit the date until being pestered online. Doesn't this change things quite a bit? If there was a true smoking gun, they would be shut down then and there already instead of continuing to operate/grow, such as issuing more tethers in the past month.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#158What is the point of Tether? Is it for dodging taxes?
In Europe, trading like-kind assets isn't a taxable event, so a lot of people take gains and move them into USDT. edit: At least that's what I remember seeing last, laws may have changed.
Last year a lot of people thought that. However its not true and trades between crypto are taxable.
Re: U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether
#159This is good news for quality cryptocurrency organizations. Bitfinex has problems, so does Tether and it's good to see bad actors in the crypto world getting weeded out, called out and put down.
Of course, not before the owners of Tether have already loaded up their Swiss vaults full of sweet sweet cash.