Just a gentle reminded by US Gov racketeers ... and statists who like to constantly remind us about that
Tether executives said to face criminal probe into bank fraud
11–20 of 303 posts
Re: Tether executives said to face criminal probe into bank fraud
#12Some smart crypto people are saying that if Tether goes down it will take a whole load of other crypto down with it.
Re: Tether executives said to face criminal probe into bank fraud
#13An 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...
Some people being ignorant about how it works makes it (probably) a scam?
That ZH article's ifs, possiblies, and maybes are doing a lot of heavy lifting.
Is the Bitcoin price up? Queue the Tether FUD.
Re: Tether executives said to face criminal probe into bank fraud
#14Edit: Isn't it a huge red flag that Tether doesn't make any money off transaction fees? Their daily volume is almost 2x that of BTC. They could fully support the company with a tiny transaction fee and avoid all the regulatory uncertainty/FUD.
How does tether make money (aside from potential fraud)? Is there a transaction fee that supports the people and cost of running tether (the company)?
Re: Tether executives said to face criminal probe into bank fraud
#15Edit: Isn't it a huge red flag that Tether doesn't make any money off transaction fees? Their daily volume is almost 2x that of BTC. They could fully support the company with a tiny transaction fee and avoid all the regulatory uncertainty/FUD. How does tether make money (aside from potential fraud)? Is there a transaction fee that supports the people and cost of running tether (the company)?
The float from _allegedly_ having $xx,xxx,xxx,xxx in assets.
Re: Tether executives said to face criminal probe into bank fraud
#16An 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...
Some people being ignorant about how it works makes it (probably) a scam? That ZH article's ifs, possiblies, and maybes are doing a lot of heavy lifting. Is the Bitcoin price up? Queue the Tether FUD.
This is cryptocurrency, where “Don’t trust. Verify.” is the sentiment, and they’ve done a terrible job at allowing verification.
Re: Tether executives said to face criminal probe into bank fraud
#17> 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…
Financial regulations carry three types of penalties:
- Criminal: go straight to jail
- Civil Fines: pay money
- Civil Injunctions: never work in finance again
In the United States there are several entities charged with enforcing financial regulations. You can roughly divide them up by jurisdiction:
- Federal agencies: Securities and Enforcement Commission (SEC) which can only enforce civil penalties, Department of Justice (DOJ) which can send you to jail, and other three-letter agencies.
- States and local governments: New York Attorney General, Manhattan District Attorney, etc.
- Self-Regulatory Agencies: New York Stock Exchange, Chicago Board Options Exchange, etc. can investigate on their own.
If this sounds complicated, well, it is! A company under investigation has to consider the ramifications that resolving one investigation will have on others.
Traditionally, companies settled with NYAG and the SEC on civil grounds without admitting or denying liability. This is because admitting fault will almost certainly screw up your defense against the federal criminal investigation, which is what you're really afraid of anyway. (Not to mention hundreds of private lawsuits that will be filed if you assume fault).
New York Attorney General's office can pursue criminal charges as well but the penalties aren't as feared as federal criminal charges. Defendants assume correctly that if they're going to be convicted in state courts, they're going to be convicted in federal cases as well. So there's not much incentive to resolve a state criminal case when federal prosecutors are circling the water.
From the NYAG's perspective, they know that any criminal charges they bring will be second fiddle to the federal criminal charges. It could make more sense to 'strike the first blood' and get a financial settlement from a company before the federal hammer falls.
And from the company's perspective, settling early with the AG might be a way to show the federal prosecutors that it is capable of reforming its ways. Federal criminal charges will kill a company. If federal prosecutors can be convinced that the company is capable of being reformed, they might agree to a Non-Prosecution Agreement (or Deferred Prosecution Agreement) which says, company admits X, Y, Z, and will pay $$$, and will agree to outside monitoring to make sure it doesn't break laws again, in exchange for not being charged with a crime. It's kinda like a plea agreement except the company isn't formally convicted.
Executives and individuals responsible for the wrongdoing often get thrown to the wolves. I wouldn't want to be Tether execs right now.
Re: Tether executives said to face criminal probe into bank fraud
#18Edit: Isn't it a huge red flag that Tether doesn't make any money off transaction fees? Their daily volume is almost 2x that of BTC. They could fully support the company with a tiny transaction fee and avoid all the regulatory uncertainty/FUD. How does tether make money (aside from potential fraud)? Is there a transaction fee that supports the people and cost of running tether (the company)?
The float from _allegedly_ having $xx,xxx,xxx,xxx in assets.
If you had literally more than $5 billion per employee under management, swiping a few billion because what are the odds of a bank run becomes extremely tempting…
Re: Tether executives said to face criminal probe into bank fraud
#19An 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...
>Tether usually has 2-3x the volume of bitcoin in any given day. And no one seems to know anything about how it works.
I think these are both bad arguments. If the most used stablecoin is used for most BTC volume as well as other crypto trades, you'd expect it to be more.
>. And no one seems to know anything about how it works
What? People do know how it works, or at least as much as with many other projects.
Re: Tether executives said to face criminal probe into bank fraud
#20Edit: Isn't it a huge red flag that Tether doesn't make any money off transaction fees? Their daily volume is almost 2x that of BTC. They could fully support the company with a tiny transaction fee and avoid all the regulatory uncertainty/FUD. How does tether make money (aside from potential fraud)? Is there a transaction fee that supports the people and cost of running tether (the company)?
They invest the funds backing the Tether in dubious investments (mostly short term loans to unknown companies, but some precious metals, bonds, funds, and even some crypto
(all according to them, but completely unaudited)