Crypto Market Roiled by New Allegations Against Tether, Bitfinex

Post by jamoes » Fri, Apr 26, 2019, 1:19 AM UTC

vkou wrote: post #101

woah wrote: post #86

Earlier quoted context omitted.

Don’t ask Ross Ulbricht. You’ll have to ask the DEA agents who embezzled money while making unsubstantiated accusations of murder for hire. https://arstechnica.com/tech-policy/2016/08/stealing-bitcoin...

The accusations were quite substantiated, his defense was about as laughable as 'my baby brother did it'.

Post by zaroth » Fri, Apr 26, 2019, 1:28 AM UTC

arcticfox wrote: post #82

loeg wrote: post #62

Earlier quoted context omitted.

Wouldn't it be surprising if the same people weren't behind Crypto Capital? Like, if you were going to embezzle your own exchange with vaguely plausible deniability, how would you do it differently from exactly as done here?

I'm curious who these Merlin and Oz fellows are, does anyone know more about them?

Post by ShorsHammer » Fri, Apr 26, 2019, 1:32 AM UTC

Scoundreller wrote: post #81

ShorsHammer wrote: post #67

Everyone agree's that tether should have a 1-to-1 backing. The delicious irony in it all is that the money in your bank is backed by about $0.10 for every dollar they owe savers. I hope for the day when people expect the same of the banking system that underpins the whole economy.

You fail to understand how bank reserves work. > your bank is backed by about $0.10 for every dollar they owe savers. And the bank has the other $0.90 in long-term assets. While no bank can survive every depositor wanting every dollar out of their chequing account on the same day, there is something auditable backing each dollar of deposit.

Post by [deleted] » Fri, Apr 26, 2019, 1:39 AM UTC

lenticular wrote: post #137

chimpburger wrote: post #125

Earlier quoted context omitted.

You misunderstood. With the "Fractional Reserve Banking" system, banks lend out money that is NOT under deposit. They are licensed to lend out money created from nothing. This is the mechanism by which money is created https://courses.lumenlearning.com/boundless-economics/chapte...

Yes everyone knows this. However, the difference is regulation, collateral, and FDIC insurance. There's been a huge number of instances of exchanges or other parties screwing over Bitcoin users, but there has not been a single loss of bank deposits since the FDIC has existed. No one is actually checking that Tether backs their currency 100%, you know.

Post by kilroy123 » Fri, Apr 26, 2019, 1:45 AM UTC

hendzen wrote: post #114

ronsor wrote: post #30

Cryptocurrency exchanges seem to be full of fraud and deception.

Speaking as someone who was deeply interested in bitcoin in ~2013, cryptocurrency today is a wretched hive of scum and villainy. When someone tells me today that they are working on something related to crypto I make a mental note to never work with them or take anything they do seriously.