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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

#41

Post by jkhdigital »

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…

And what about all the cash-for-difference swaps and futures? BitMEX's XBTUSD swap is basically a synthetic dollar that can only be redeemed for Bitcoin within the walled garden of BitMEX. Tether is like a dollar swap contract that can be moved on-chain and, in theory, can be redeemed for the nominal currency. Of course Tether represents itself as a fully reserved stablecoin, which is likely a total fiction, but in the grand scheme of things I don't think it actually matters much.

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

#42

Post by PragmaticPulp »

stefan_ wrote: post #30

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.

This particular lawsuit started in 2019 and was narrowly scoped. They don’t have infinite jurisdiction over Tether’s global operations.

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

#43

Post by raiyu »

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 minting of tether accelerated in 2020 and continues in to 2021 including one week alone where $2B was minted.

https://www.coindesk.com/tether-mints-record-2b-usdt-in-one-...

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

#44

Post by arberx »

Have no idea why ycombinator is so salty towards anything crypto.

Yes, tether was wrong when they said USDT was backed by “US Dollars”. But, the conclusion is USDT is backed by something, the likes of which is probably a fractional reserve.

Case is resolved, with Tether admitting no fault.

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

#45

Post by divs1210 »

America lied to the world when it claimed each dollar was backed by gold.

When the world figured it out and there was a bank run, the gold standard was "temporarily" put off by Nixon in 1970.

Bitfinex just seems to be playing the same game America has always been playing.

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

#48

Post by api »

PragmaticPulp wrote: post #31
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…

> Investing in virtually any asset other than cash will, almost by definition, shield you from inflation.

... which is why virtually every nation on Earth adopted some kind of inflationary fiat currency. It pushes money to be invested, not held. Wealth is a verb, not a noun.

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

#49

Post by londons_explore »

capnorange wrote: post #23

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

I think I trust ag.ny.gov much more than theblockcrypto.com...

It suggests the latter is 100% made up news, possibly with the aim of market manipulation by sentiment bots who will be fooled for a few minutes until humans intervene.

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

#50

Post by NovemberWhiskey »

ssakamoto wrote: post #38
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

Sorry, is the question really "what is the difference between the US Government printing dollars and Tether printing dollars?"
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