Bitfinex and Tether required to end all trading activity with New Yorkers • Hacker News Board

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#21

Post by filleokus » Tue, Feb 23, 2021, 1:19 PM UTC

So there are 34B outstanding USDT right now. In the documents I see talk about some 850M USD is missing. Are all the other ≈ 33B USDT backed?

Will we only know that on the first report they obliged to do each quarter? Will those reports be made public?

I'm confused what to make of this.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#22

Post by Clewza313 » Tue, Feb 23, 2021, 1:20 PM UTC

Meanwhile, a group of hackers claim to have penetrated Bitfinex/Tether's bank Deltec:

https://deltecexposed.medium.com/deltec-bank-trust-and-their...

Grab some popcorn, the show is only getting started.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#23

Post by capnorange » Tue, Feb 23, 2021, 1:20 PM UTC

wait.. this seems contradictory to this -- https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne...

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#24

Post by capnorange » Tue, Feb 23, 2021, 1:22 PM UTC

Clewza313 wrote: post #22

Meanwhile, a group of hackers claim to have penetrated Bitfinex/Tether's bank Deltec: https://deltecexposed.medium.com/deltec-bank-trust-and-their... Grab some popcorn, the show is only getting started.

no evidence. looks like some random post.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#25

Post by londons_explore » Tue, Feb 23, 2021, 1:22 PM UTC

The price of bitcoin dropped substantially yesterday.

I wonder who was trading on this information before release...

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#26

Post by jkhdigital » Tue, Feb 23, 2021, 1:23 PM UTC

Honestly, this is kind of a nothingburger. The press release seems to merely reinforce what was an open secret in the cryptocurrency world, which is that Bitfinex and Tether have played fast and loose with whatever reserves they received for their Tether issuance. Which is, of course, utterly unremarkable to anyone who knows anything about how financial sausage is really made.

Bitfinex and Tether are shady. Caveat emptor, and carry on hodling.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#27

Post by cbhl » Tue, Feb 23, 2021, 1:23 PM UTC

If I'm reading the settlement correctly, Bitfinex will now have even less USD to back Tethers, since they'll have to wire an $18,500,000 transfer to the State of New York.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#28

Post by Clewza313 » Tue, Feb 23, 2021, 1:24 PM UTC

filleokus wrote: post #21

So there are 34B outstanding USDT right now. In the documents I see talk about some 850M USD is missing. Are all the other ≈ 33B USDT backed? Will we only know that on the first report they obliged to do each quarter? Will those reports be made public? I'm confused what to make of this.

The NYAG investigation is about what happened up to 2019 or so. What has happened since (which includes printing 33 of those 34 billion) is a separate matter, and NYAG is basically saying it's irrelevant because nobody in NY should be able to use Tether/Bitfinex anymore.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#29

Post by cwhiz » Tue, Feb 23, 2021, 1:24 PM UTC

Meanwhile, daily Tether volume is $170B. The entire crypto ecosystem is reliant upon the Tether scam.

Re: Bitfinex and Tether required to end all trading activity with New Yorkers

#30

Post by stefan_ » Tue, Feb 23, 2021, 1:24 PM UTC

Feels like the NYAG preferred to take an easy win over fully exposing the fraudulent scheme. But I guess in the grand scheme of things it's better to get $18M for state coffers now than be another bag holder when Tether inevitably combusts.