171–180 of 303 posts
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Update. Tether has replied here. This site is down, but this tweet has it: https://mobile.twitter.com/bitcoinsguide/status/141969423526... URL for if their site comes back online: https://tether.to/tether-responds-to-bloomberg-article/
"Open dialogue with law enforcement agencies" is a pretty funny way of describing that relationship.
This one explains the Tether scam quite nice: https://youtu.be/-whuXHSL1Pg Edit: summary: 8 people founding the tether company, 7 of them with a criminal background. Lying and denying and then admitting after they have no other option. Yeah, seems like a nice company…
Tether's business at this point is basically manufacturing red flags. It is incredible the mental gymnastics people in the cryptocurrency business go through to defend this group of crooks.
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> How would you shutdown Tether temporarily (2-3 months) if a bank ends a relationship? By refusing to take deposits for new Tether, and by shutting down redemptions if necessary while the banking relationship is sorted out. Tether doesn't exist ex nihilo; it requires active management to issue and redeem coins. If it ever cannot live up to its "fully backed" claim, then continuing to operate under a pretense is frau…
>By refusing to take deposits for new Tether, and by shutting down redemptions if necessary while the banking relationship is sorted out. I agree and expect that is the lesson the $18M fine taught them. The key point is, they had a legitimate reason for under-collateralizing during the biggest bull run in crypto history at that point. 2014-2017 was the perfect period to begin fraudulent activity if they were really i…
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The thing is, it does not matter only to those who use it. Basically all trading of Bitcoin is not actually in USD, it is in Tethers. The polite fiction is that this is the same thing, but there are a million red flags saying that this is not the case. Once Tether implodes, it takes the entire bitcoin market with it.
I was looking at the usdc, vs tether, vs dai market caps over the last few weeks. Tether seemed to have stopped printing as usdc has continued to grow. https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/usd-coin/ https://coinmarketcap.com/currencies/multi-collateral-dai/ Tether is at 60billion market cap compared to Usdc 30 billion and dai around 5 billion. Should probably look at volum…
In the end people who leave their funds at exchanges will be the one with the short end of the stick.
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DAI is backed by USDC, and USDC is a competing stablecoin. Why would a competing stablecoin want to use their own reserves to redeem USDT for you? I don't mean to be antagonistic here, but there is no safe and steady off ramp for holders of USDT if it is found to be a scam. The value of USDT will collapse, and anyone holding it will have to take a 100% loss. The only way to remedy that would be in the form of some so…
DAI is not backed by USDT.
I guess an important distinction is DAI is not 100% backed by USDC, but it is backed >50% as of this time: https://share.streamlit.io/tadzz/maker_dai_collateralization...
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>There is nothing which proves that Tether actually is backed by anything Also, there is nothing which proves that Tether actually isn't backed by anything. I see a lot of people jumping to conclusions about a topic they are self admittedly ignorant about. Perhaps wait for the DOJ to do their jobs if you don't have insider knowledge. In response to -dsr's sarcasm below (rate limit), I've got a bit of my own. "I've ru…
> Also, there is nothing which proves that Tether actually isn't backed by anything. There is a lot of circumstantial evidence though. To wit: * Tether was previously caught lying, in a manner that is attuned to how many big frauds start (you hit a small road bump, so you lie to cover up the road bump, figuring you'll be able to make up the shortfall before too long. But now your lying projections are going faster th…
My understanding is funds in a bank account were seized and the account closed. Describing the shortfall that followed, while they tried to recover said funds, as fraud, is a tremendous mischaracterization.
Did somebody at Bloomberg have a BTC short position blowup? They have a long history of publishing FUD to manipulate markets in their favor. I hear people are still looking for the mythical SuperMicro "spy chips"... lol
> 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…
It's like getting Capone on tax evasion.
Once they've got them behind bars they can start untangling the clusterf*ck.
Thing is untangling the clusterf*ck is likely a multinational, mutli-party, multi-year effort but lying to Wells should be cut and dried. Remember it took 17 countries cooperating to unwind Liberty Reserve and that was a fraction of the scale and audacity. This will allow them to end it the fastest way possible.
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And yet if I walk into a grocery store, I can buy milk with USD. Weird — it’s almost like there is something backing it, and it’s not just strictly gold/silver!
People can buy cryptocurrencies with USDT as well. They can even cash out dollars later. Weird, right? It's almost like there's something backing USDT as well even though it's all nonsense. Another truth is governments force their citizens to use their own currencies. They require citizens to pay taxes in those currencies. They probably even require stores to accept those currencies.
Yes. Speculation and their ~~criminal conspirators~~ exchanges.
> Another truth is governments force their citizens to use their own currencies.
Absolutely. Not a single person in this thread has argued otherwise. What's your point? How does that somehow make something else more stable? If the government is the big bad wolf, what's stopping it from using that same force to blow USDT's house down? What army and treasury is going to rescue USDT when it crashes? (And it will crash, eventually, just like every other market in history has, whether its due to Tether's negligence or external pressures)
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Nobody knows where the USD supposedly backing it goes. Most of it is in “commercial paper” they said, but the investors who work in that industry say they’ve never heard of them. This seems impossible because at their scale, that would make them, like, the 5th largest commercial paper investor on Wall Street. How could commercial paper investors not heard of them?
'Cause it's commercial paper from the exchanges? We know they've made "loans" to Bitfinex, after all.
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Or more likely tether isn’t backed by anything at all. The auditor they hired quit before completing their audit. Seems legit to me. These dudes are a complete scam but as long as BTC goes to the moon nobody seems to care.
> Or more likely tether isn’t backed by anything at all. In order to believe this, you have to believe that Leticia James got the data from the NYAG subpoenas, and then ignored the fact that Tether has no backing. So no, not "more likely".
> New York Attorney General Letitia James’ office says it found that Tether sometimes held no reserves to back its cryptocurrency’s dollar peg. It said that, from mid-2017, the company had no access to banking and misled clients about liquidity issues. [2]
It also depends on what you believe the role of that settlement was. Some speculated it was a trial balloon for a federal suit.
[1] https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen...
[2] https://www.cnbc.com/2021/02/23/tether-bitfinex-reach-settle...