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

ag.ny.gov

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

#31

Post by PragmaticPulp »

bronzeage wrote: post #16

I'm waiting patiently for the whole Tether printing scheme to fall and crush to finally purchase Bitcoin / Ether. However I'm not viewing them as inflation hedges so long as Bitfinex / etc. are allowed to continue with their obvious money printing scheme. When most crypto trading volume is traded at trustworthy exchanges which actually hold dollars as much as they say they do, I'll trust $/BTC to be a fair market. It…

Cryptocurrency isn’t the only way to escape USD inflation. Investors have been investing to avoid inflation long before Bitcoin was invented.

Investing in virtually any asset other than cash will, almost by definition, shield you from inflation. Inflation is an increase in asset prices, resulted in reduced buying power. You only need to invest in assets (stocks for example) and minimize holdings in cash if your goal is simply to avoid losing buying power of your cash. Cryptocurrency currently functions as a speculative instrument, not a stable store of value.

Cryptocurrency in general is only deflationary if we pretend only a single cryptocurrency exists and ignore all of the increasingly brazen financial instruments offered by exchanges. As it stands, the ever expanding list of crypto currencies, NFTs, crypto lending products, and new crypto currencies represents a general inflation in the cryptocurrency space.

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

#32

Post by Jonnax »

andreaorru wrote: post #12

"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices," said Weinstein, a former federal prosecutor. [0] [0] https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... EDIT: For some reason I'm being downvoted, but I'm genuinely curious to understand why this news is being simultaneously interpreted in two opposite ways.

The linked webpage is from the New York Attorney General's office and the quote you quoted is from one of BitFenix's lawyers.

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

#34

Post by robjan »

Spooky23 wrote: post #3
rtrdea wrote: post #2

Bitfinex isn't an American company. This is ridiculous

What’s ridiculous? That the company’s home jurisdiction allowed them to defraud the public?

It's not even clear where the company is physically located. It's a Hong Kong company but all of the addresses here are just virtual offices and shell companies.

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

#35

Post by PragmaticPulp »

jkhdigital wrote: post #26

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 em…

It’s more important than that. Cryptocurrency proponents have been trying to downplay the Tether situation for years.

One of the common dismissals was the idea that if what Tether was doing was truly fraudulent, some government institution would step in to intervene. Proponents pointed to the lack of intervention as a signal that Tether was operating above board.

This also reveals new facts and numbers about the scale of what has been going on. We still don’t know the full story, but it’s clear that reality is even worse than we thought.

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

#37

Post by im3w1l »

dgellow wrote: post #7
bonzini wrote: post #4

Earlier quoted context omitted.

The full title ends with "Illegal Activities in New York", not sure why it was removed.

Because it's too long for HN (I instead replaced "Attorney General" by "NYAG", not ideal but an ok compromise IMHO)

"Bitfinex banned from New York."

Edit: I'm getting downvoted but I went soft on him. You know what, I'll say it. The choice of which words to retain (virtual currency trading platform??) and which to drop (in New York) is really bad and veering into suspicious, seems like it's trying to stir up panic.

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

#38

Post by ssakamoto »

bronzeage wrote: post #16

I'm waiting patiently for the whole Tether printing scheme to fall and crush to finally purchase Bitcoin / Ether. However I'm not viewing them as inflation hedges so long as Bitfinex / etc. are allowed to continue with their obvious money printing scheme. When most crypto trading volume is traded at trustworthy exchanges which actually hold dollars as much as they say they do, I'll trust $/BTC to be a fair market. It…

Both are still printing machines. Dollars are backed by faith in the USA. Is there any difference ?

Powell - "We print money digitally. As a central bank, we have the ability to create money."

https://www.youtube.com/watch?v=ff6SDsaS7rI

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

#39

Post by londons_explore »

temp wrote: post #19

So even back in 2017, Tether was backed only by a fraction of USD. >Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal. Wonder how much of the tether they pumped out through last year has been backed?

Nearly none I would guess... Which large company, investment firm or rich individual will wire Tether Inc millions of dollars in return for a promise from a bunch of people that look like arrest warrants will shortly be issued for them...

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

#40

Post by owenmarshall »

jkhdigital wrote: post #26

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 em…

Considering the meteoric rise of BTC is tied so deeply to Tether issuances, it sounds an awful lot like you’re trying to convince us the emperor really has clothes.
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