Tether executives said to face criminal probe into bank fraud
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Re: Tether executives said to face criminal probe into bank fraud
#2> But the Justice Department investigation is focused on conduct that occurred years ago, when Tether was in its more nascent stages. Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential.
Notably this is for events some time ago. Investigators haven’t gotten far enough ahead to formally file anything relating to the events of March 2020 to present, when Tether added ~$60 billion in tokens and claimed to be one of the largest commercial paper holders in the world.
(No one in the commercial paper sector has heard of them)
To be clear, by saying it is from some time ago I am not dismissing it. This is extremely serious for Tether.
Re: Tether executives said to face criminal probe into bank fraud
#3> But the Justice Department investigation is focused on conduct that occurred years ago, when Tether was in its more nascent stages. Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential. Notably this is for events some time ago. I…
How did you survey the commercial paper sector?
Re: Tether executives said to face criminal probe into bank fraud
#4> In February, Bitfinex and several Tether affiliates agreed to pay $18.5 million to settle claims from New York Attorney General Letitia James that the firms hid losses and lied that each token was supported by one U.S. dollar.
Can anyone explain this because I'm not familiar with the legal framework here - they paid to settle with NYAG? So you pay and then having potentially broken a law isn't a problem anymore? How does this work?
Re: Tether executives said to face criminal probe into bank fraud
#5Re: Tether executives said to face criminal probe into bank fraud
#6> But the Justice Department investigation is focused on conduct that occurred years ago, when Tether was in its more nascent stages. Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential. Notably this is for events some time ago. I…
How did you survey the commercial paper sector?
This has been widely reported, see eg Matt Levine's recent take: https://www.bloomberg.com/opinion/articles/2021-07-22/privat...
Re: Tether executives said to face criminal probe into bank fraud
#7Re: Tether executives said to face criminal probe into bank fraud
#8> In February, Bitfinex and several Tether affiliates agreed to pay $18.5 million to settle claims from New York Attorney General Letitia James that the firms hid losses and lied that each token was supported by one U.S. dollar. Can anyone explain this because I'm not familiar with the legal framework here - they paid to settle with NYAG? So you pay and then having potentially broken a law isn't a problem anymore? Ho…
This is very common in the US, especially for banks and financial institutions.
They settle without admitting any wrongdoing, and agree to pay a fine and promise to change their procedures to avoid doing this in the future.
It is exceedingly rare for financial executives to go to jail for crimes committed by a corporation.
Re: Tether executives said to face criminal probe into bank fraud
#9> But the Justice Department investigation is focused on conduct that occurred years ago, when Tether was in its more nascent stages. Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential. Notably this is for events some time ago. I…
How did you survey the commercial paper sector?
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Re: Tether executives said to face criminal probe into bank fraud
#10An interesting primer on Tether, and whether it is a scam:
https://www.zerohedge.com/crypto/what-effect-would-tether-be...
(Yes, I know it's zerohedge, but this is a decent article)
Tether usually has 2-3x the volume of bitcoin in any given day. And no one seems to know anything about how it works. So in my estimation, it probably is a scam...