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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

#431

Post by graeme »

safog wrote: post #237
FireBeyond wrote: post #208

Earlier quoted context omitted.

> - Is USDT actually backed 1:1 by USD / cash equivalents as Tether claims? w/o independent audits we have no idea. I'm going to say no. Because Tether refuses audit, refuses to name banks, and would be, based on their printing rates, depositing $3.5B USD a week into their bank (a rate which would put them on par with AT&T, Samsung, or Alphabet). I'm not sure how a few people working out of Hong Kong, etc., do that w…

Yes I agree, but still trying to figure out what impact that has on the broader eco system if USDT ends up being worthless starting now. How exactly will it impact the BTC price?

70% of btc volume is tether. Apparently the dollar exit points in regulated markets are rather narrow.

So it could be rather catastrophic if either the market loses confidence in Tether or subsequent Us enforcement action shuts them down or makes Tether untouchable to various exchanges.

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

#432

Post by boring_twenties »

quentinadam wrote: post #429
boring_twenties wrote: post #426

Earlier quoted context omitted.

> It may help that we bank at all of the same banks as Kraken Sounds like a good idea. Do you happen to know if a list of such banks is public?

As a start, you can check out Signature Bank and Silvergate Bank. They are known for being crypto-friendly banks, and they bank literally every exchange that trades crypto versus USD.

Thank you, I will!

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

#433

Post by 35fbe7d3d5b9 »

wpietri wrote: post #172
PragmaticPulp wrote: post #74

Earlier quoted context omitted.

> Sure, tether wasn’t backed at all times (probably is now), Even Tether admitted that they weren’t backed by funds, and that was before they printed most of their current supply: https://www.coindesk.com/tether-lawyer-confirms-stablecoin-7... I don’t understand why anyone would be in a rush to take them at their word when every new piece of evidence demonstrates that Tether’s operators are not interested in behaving…

I think it has a pretty simple explanation. The crypto community started with a few dedicated idealists. But it quickly attracted loons, fantasists, scammers, and get-rich-quick dreamers, along with some reasonable people interested in the hype. Over time, as the space has produced almost no actual utility and generated billions in theft, fraud, and losses, the reasonable people generally got out, often with fingers…

> so anything that keeps the industry aloft is great by them.

Bingo. Tether being less than 100% backed isn't a surprise. Heck, they've admitted it publicly for over a year now - this is, however, the first time we've seen how big the gap truly is.

But the peg is still holding, which means that

1) the market had already priced in the risk of USDT being 14% rather than 100% backed, or

2) the market for USD:USDT is not rational.

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

#434

Post by inter_netuser »

mumblemumble wrote: post #114
inter_netuser wrote: post #91

Earlier quoted context omitted.

You can take redemption from tether and they will wire you the money, they are in fact registered and regulated. on several exchanges it can be exchanged into fiat, for smaller participant.s It would collapse a long time ago, if it weren't backed.

Heh. I just made another comment saying that Tether is not like Madoff, so of course I now need to make one comparing Tether to Madoff. Bernard L. Madoff Investment Securities was also registered and regulated, and also had to wire people their money when asked. Even though they didn't actually have all the assets they said they did. He was able to keep it up for 3 or 4 decades. It will only collapse if outflows exce…

Was Madoff also subpoenaed by the NYAG who investigated and announced there was no fraud and settled for a trivial amount?

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

#435

Post by inter_netuser »

user-the-name wrote: post #391
inter_netuser wrote: post #328

Earlier quoted context omitted.

Several exchanges list USDT/USD pair.

You very specifically claimed "You can take redemption from tether and they will wire you the money". There is no evidence that this is the case. Tether sure doesn't offer such a service openly.

1. https://tether.to/fees/

2. https://tether.to/redeem-tethers-to-bank-account/

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

#436

Post by nbardy »

rthomas6 wrote: post #422
notahacker wrote: post #355

Earlier quoted context omitted.

The real question would be "how". A [crypto]asset backed by another currency is easy in principle: simply hold the currency to back it (and make sure you have some sort of transaction fee to cover your storage costs, and don't lie about it...). Same with a [crypto]asset backed by oil or metals. But CPI goods include many goods which are either perishable or lose value over time, and the composition of actual CPI bask…

Well, DAI exists and is pegged to USD without USD backing. Why couldn't one create a similar system with a CPI value target instead of a 1 USD target?

You could it's a really interesting idea. Synthetix and kwanta have done it with TSLA share price. It requires a liquidity pool to balance the asset. The liquidity pools are usually seeded with rewards from the companies that start them. They eventually find stability via automated market makers.

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

#437

Post by jonplackett »

vmception wrote: post #428
quentinadam wrote: post #427

Earlier quoted context omitted.

> Almost all fiat deposits into Bitfinex create USDT. As a matter of fact that is NOT true. (speaking as a crypto hedge fund manager, active since 2013, and trading > $1B/month on all major exchanges). It used to be like that in the past (when USD and USDT where one just represented as "USD" on Bitfinex), but this changed a year or two ago. Now, USD wires are being credited as USD and USDT deposits are being credited…

Nice this is how Coinbase functions with USDC too Likely they all piggyback off of each other’s implementations in the face of evolving regulatory guidance

Why does USDC and USDT need to exist for this? What’s the benefit of not just having USD in your Coinbase/bitfinex acc if they’re meant to be pegged anyway?

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

#438

Post by inter_netuser »

jonplackett wrote: post #437
vmception wrote: post #428

Earlier quoted context omitted.

Nice this is how Coinbase functions with USDC too Likely they all piggyback off of each other’s implementations in the face of evolving regulatory guidance

Why does USDC and USDT need to exist for this? What’s the benefit of not just having USD in your Coinbase/bitfinex acc if they’re meant to be pegged anyway?

a significant amount of cross-border trade (yes, actual goods transported in meatspace) is conducted in USDT for many years now.

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

#439

Post by tylersmith »

jonplackett wrote: post #437
vmception wrote: post #428

Earlier quoted context omitted.

Nice this is how Coinbase functions with USDC too Likely they all piggyback off of each other’s implementations in the face of evolving regulatory guidance

Why does USDC and USDT need to exist for this? What’s the benefit of not just having USD in your Coinbase/bitfinex acc if they’re meant to be pegged anyway?

Sending USDT is cheaper, faster and easier than sending actual USD.

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

#440

Post by bitcoinmoney »

vmception wrote: post #290
dudus wrote: post #272

I've been following Tether for quite a long time. I have no absolute proof it is a scam but the writing is on the wall. Here are some facts. - The current Market Cap of USDT is 34 Billion Dollars. It was 4B this time last year. Since the value is pegged this means there has been an influx of cash of 30 B into this shady company in the last year alone. Who invested this money? We have no idea since Tether doesn't disc…

Almost all fiat deposits into Bitfinex create USDT. Thats an additional fact that the amount is in line with the amounts that would be deposited into any big exchange. If Coinbase minted USDC whenever someone deposited, you would see the same kind of growth. The basis of your entire post is assuming impropriety based on pretty normal behavior with the addition of the business quirk of when USDT is created. The abilit…

so bitfinex customers deposited 30B US$ since last year? hard to believe.
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