Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

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

ag.ny.gov

Post reply on HN
Print view View original

481–490 of 517 posts

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

#481

Post by freeAgent »

charcircuit wrote: post #445
cbhl wrote: post #27

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.

Tether is over collateralized. If they paid that $18.5M from their collateral it would still be over collateralized by $145.9M https://wallet.tether.to/transparency

Tether claim to be over collateralized. This settlement contains numerous instances of Tether lying about their collateral situation. Why trust them without evidence at this point? They’re required to submit a report on their specific reserve holdings within 90 days. We’ll see then.

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

#482

Post by bottled_poe »

lazide wrote: post #467
gh55 wrote: post #459

Earlier quoted context omitted.

USDT, USDC and DAI each have their own set of counterparty risks. USDT is regulated somewhere sunny, USDC somewhere that could be hostile if given enough power, and DAI is backed by digital assets such as custodied Ethereum. The sooner there are more solid options in more jurisdictions, and more certainty around USD stablecoin regulation, the better. I will be very glad to see Tethers go away.

I can’t find where Tether is ACTUALLY regulated, but I can find a lot of misinformation about where it is regulated and how, even in their own legal pages. For instance, they claim they are regulated by FinCEN. However, they appear to only be registered with FinCEN for the purpose of reporting crimes and the like (money laundering), which does not (quite explicitly) give them the right to claim FinCEN in any way is r…

Given the amount of money we’re taking about, the number of investors affected and the extent of the fraud around these entities, I’m surprised we have not yet seen a securities class action suit raised against them... I suppose it’s all good while the ROI goes up. After the seemingly inevitable crash, I suspect a SCA would be on the cards

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

#483

Post by lazide »

bottled_poe wrote: post #482
lazide wrote: post #467

Earlier quoted context omitted.

I can’t find where Tether is ACTUALLY regulated, but I can find a lot of misinformation about where it is regulated and how, even in their own legal pages. For instance, they claim they are regulated by FinCEN. However, they appear to only be registered with FinCEN for the purpose of reporting crimes and the like (money laundering), which does not (quite explicitly) give them the right to claim FinCEN in any way is r…

Given the amount of money we’re taking about, the number of investors affected and the extent of the fraud around these entities, I’m surprised we have not yet seen a securities class action suit raised against them... I suppose it’s all good while the ROI goes up. After the seemingly inevitable crash, I suspect a SCA would be on the cards

I think there are 4+ active class action lawsuits, or were before they were combined - https://www.google.com/amp/s/www.coindesk.com/plaintiffs-com...

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

#484

Post by lovedswain »

ac29 wrote: post #466
dcolkitt wrote: post #406

Earlier quoted context omitted.

> That is absolutely no indicator for safety. Currently, several billion in value is locked into Defi-based liquidity pools with USDT. If USDT collapses tomorrow, the stakers will lose nearly all of their principal. (Fast traders will quickly swap worthless USDT for all the USDC in the pool, before hardly anyone has time to remove liquidity.) The largest of these pool, currently pays about 2.6%.[1] Even if all of tha…

> If you really disagree, you can even short USDT, by borrowing USDT on Compound at 4.2%. Then use that to buy USDC and supply it on Compound at 4.9%.[2] If USDT collapses, you'll make nearly 100% as you'll only have to buy back now worthless USDC. In fact the market will even pay you take this position, with the only risk being if USDC collapses relative to USDT. This trade involves risk, and not just the direct USD…

> If it didn't, there's no particular reason multi-billion dollar

This is true in theory but in practice it seems much more commonly false. Even in vastly more mature and liquid markets, straightforward arbitrages can persist for years and in some cases decades, even after an inefficiency becomes public knowledge

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

#485

Post by cdiddy2 »

eightysixfour wrote: post #451
cdiddy2 wrote: post #294

Earlier quoted context omitted.

I posted my source 3 comments up.

Why would we trust that source over the exchange themselves?

My other comment here was useful with other sources showing that exchanges do fake data.

https://medium.com/@nic__carter/assessing-bitcoins-liquidity...

https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...

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

#486

Post by [deleted] »

cdiddy2 wrote: post #485
eightysixfour wrote: post #451

Earlier quoted context omitted.

Why would we trust that source over the exchange themselves?

My other comment here was useful with other sources showing that exchanges do fake data. https://medium.com/@nic__carter/assessing-bitcoins-liquidity... https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...

[deleted]

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

#487

Post by eightysixfour »

cdiddy2 wrote: post #485
eightysixfour wrote: post #451

Earlier quoted context omitted.

Why would we trust that source over the exchange themselves?

My other comment here was useful with other sources showing that exchanges do fake data. https://medium.com/@nic__carter/assessing-bitcoins-liquidity... https://www.sec.gov/comments/sr-nysearca-2019-01/srnysearca2...

The second source uses Coinbase as the standard for accuracy and compares another exchange to it...

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

#488

Post by vmception »

alasdair_ wrote: post #479
vmception wrote: post #374

Earlier quoted context omitted.

I agree and have always found this interesting. But it is similar behavior in more transparent stablecoins. Only Gemini’s GUSD has seemed to completely burned to nothing at one point. But USDC and DAI have growth so similar to Tether during bear markets that I cant put the lack of burns squarely on Bitfinex. Either there is a broader accounting issue with minting and burning methodologies or people/entities really do…

> If Tether is worth $1.02 then you can mint a new tether by depositing on Bitfinex and selling that Tether for a 2% premium. Sure, but what if Tether is at $0.98 - how do you get dollars back?

If you have a bitfinex account you can redeem the tethers for dollars at a 1:1 rate still and this would burn the tether reducing the supply.

Not all countries like US can get an account there or use fiat so I wouldnt know if the redemption mechanism is currently working or not

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

#489

Post by vmception »

RC_ITR wrote: post #450
inter_netuser wrote: post #438

Earlier quoted context omitted.

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

I still am waiting for a source on this, unless the implication is that those meat-space trades are all illegal / ML and therefore not tracked....

What kind of source would you be looking for

Its like cellular service in an underground subway station: people tell you it arrived and use it and nobody thinks about it afterwards. There wont be a source about that whether you believed it or not.

USDT is as frictionless so it just has use.

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

#490

Post by vmception »

hitekker wrote: post #458
vmception wrote: post #453

Earlier quoted context omitted.

Not everything needs a dissertation long disclaimer just so you can decide if you want to listen to me The accuracy of any statement can be weighed and discussed on its own merits

You make multiple false, assertions in one comment, backtrack those assertions in other comments, and then pretend your position has remained unchanged the whole time. It comes across as dishonest and makes me, an outsider, wonder how much tether you own.

Thats because they aren't assertions, its called a conversation
Post reply on HN