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

Tether executives said to face criminal probe into bank fraud

bloomberg.com

Post reply on HN
Print view View original

251–260 of 303 posts

Re: Tether executives said to face criminal probe into bank fraud

#251

Post by shawabawa3 »

user-the-name wrote: post #250
scsilver wrote: post #149

Earlier quoted context omitted.

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…

USDC is rapidly shedding legitimacy in order to grow this quickly. Do not expect it to be much different than Tether ultimately.

How are USDC losing legitimacy? I haven't heard of this. They have monthly attestations that they hold the backing funds by a legit accountancy firm

Re: Tether executives said to face criminal probe into bank fraud

#252

Post by ryanobjc »

arcticbull wrote: post #244
deepvibrations wrote: post #241

Earlier quoted context omitted.

I agree there is a lot of this in the space, but if you look past the laser eyes, there is some really awesome stuff happening in defi.

I don't disagree there's some cool technology, and in particular in the DeFi space - the problem is it's all fruit of the poison tree at the moment. It's all dependent on price action and the price action is dependent on Tether, on sketchy exchanges, on crime and criminality, on 125X leverage, on manipulation. And of course, there's so many problems with smart contracts - even the core idea of permanent, irrevocable…

Man I’d hate for you to learn actual us history then…

Re: Tether executives said to face criminal probe into bank fraud

#253

Post by shawabawa3 »

WalterSear wrote: post #224
cosmojg wrote: post #222

Why do people still use Tether? Alternatives like USDC and Dai are plenty liquid. I don't understand why anyone would put up with this level of unnecessary risk.

USDC isn't audited either. And the risk is systemic. Either you put up with it, or you get out of crypto.

USDC isn't audited, but it is attested, which means what most laymen think of auditing as meaning - a major auditing firm has confirmed they hold the backing dollars

Re: Tether executives said to face criminal probe into bank fraud

#254

Post by paulryanrogers »

matheusmoreira wrote: post #223
rchaud wrote: post #150

Earlier quoted context omitted.

No, because it still isn't legal tender, and lacks credibility as a medium of exchange. The simplest example of this is loyalty programs that offer 'points' that can be redeemed for goods and services. Since the points are useless on their own, the vendor creates agreements with other businesses so that they accept the points. That's what gives the rewards program credibility. Real currency still changes hands in the…

> No, because it still isn't legal tender, and lacks credibility as a medium of exchange. Some countries have accepted BTC as legal tender. It's only a matter of time really.

> Some countries have accepted BTC as legal tender. It's only a matter of time really.

Why?

Re: Tether executives said to face criminal probe into bank fraud

#255

Post by WalterSear »

shawabawa3 wrote: post #253
WalterSear wrote: post #224

Earlier quoted context omitted.

USDC isn't audited either. And the risk is systemic. Either you put up with it, or you get out of crypto.

USDC isn't audited, but it is attested, which means what most laymen think of auditing as meaning - a major auditing firm has confirmed they hold the backing dollars

This entirely false.

An attestation is an assurance that published valuations add up correctly. It provides no verification of the veracity of those valuations. Attestations are intended to be used as a follow-up to an actual audit, not as a replacement for one.

> One of the things to keep in mind to differentiate each of these services is that audits are performed to discover data, risks, or compliance issues that may not have been known before the audit took place, and attestation is to evaluate and review how true the data or information is when compared to a stated purpose, internal control or system.

https://www.ispartnersllc.com/blog/defining-attestation-assu...

Re: Tether executives said to face criminal probe into bank fraud

#256

Post by arcticbull »

ryanobjc wrote: post #252
arcticbull wrote: post #244

Earlier quoted context omitted.

I don't disagree there's some cool technology, and in particular in the DeFi space - the problem is it's all fruit of the poison tree at the moment. It's all dependent on price action and the price action is dependent on Tether, on sketchy exchanges, on crime and criminality, on 125X leverage, on manipulation. And of course, there's so many problems with smart contracts - even the core idea of permanent, irrevocable…

Man I’d hate for you to learn actual us history then…

Haha, the history is past, ideally we should learn from those mistakes not facilitate re-creating them!

Re: Tether executives said to face criminal probe into bank fraud

#257

Post by gbronner »

Seems like the obvious thing to do is set up a large Bitcoin short position, buy a bunch of tethers, and publicly try to redeem them

If tether has backing, you only lose the tether premium. Otherwise you lose all your tethers, but hopefully you make it back on the rest of your crypto shorts.

Re: Tether executives said to face criminal probe into bank fraud

#258

Post by matheusmoreira »

paulryanrogers wrote: post #254
matheusmoreira wrote: post #223

Earlier quoted context omitted.

> No, because it still isn't legal tender, and lacks credibility as a medium of exchange. Some countries have accepted BTC as legal tender. It's only a matter of time really.

> Some countries have accepted BTC as legal tender. It's only a matter of time really. Why?

There are real precedents now, I have no doubt others will follow. Cryptocurrencies are real currencies, there's no reason not to accept them as such.

Re: Tether executives said to face criminal probe into bank fraud

#260

Post by DebtDeflation »

gammarator wrote: post #28
graeme wrote: post #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. I…

This thread speculates that Tether’s commercial paper may be in Chinese real estate, which is currently suffering huge losses… https://twitter.com/TheLastBearSta1/status/14183024655571107...

>This thread speculates that Tether’s commercial paper may be in Chinese real estate

The simpler answer is Tether's commercial paper was issued by Bitfinex, or some shell company owned by Bitfinex.

Post reply on HN