> there was never more than $61.5 million backing Tether, even as more 442 million coins were circulating at one point.
Ah, pulling the classic "fractional reserve" I see.
Tether Fined $41M for Lying About Reserves
11–20 of 267 posts
Re: Tether Fined $41M for Lying About Reserves
#12I don't understand why this is something they can settle rather than something that gets them completely shut down.
I'm not saying they shouldn't be shut down, but I genuinely wonder how that process would work. People don't have an account with Tether itself, so how would they be able to compel people to "return?" the Tethers and get their cash back?
Re: Tether Fined $41M for Lying About Reserves
#13> there was never more than $61.5 million backing Tether, even as more 442 million coins were circulating at one point. Ah, pulling the classic "fractional reserve" I see.
fiat debasing the currency.
What I find ironic is that the crypto ecosystem still ended up with something like central banks, only in this case their mandate is make money for its owners, and they have no accountability or obligation to serve the general public.
Re: Tether Fined $41M for Lying About Reserves
#14Re: Tether Fined $41M for Lying About Reserves
#15I don't understand why this is something they can settle rather than something that gets them completely shut down.
I'm not saying they shouldn't be shut down, but I genuinely wonder how that process would work. People don't have an account with Tether itself, so how would they be able to compel people to "return?" the Tethers and get their cash back?
In theory, by announcing a changeover period and a deadline for turning them in? If they don’t, it’s on them.
A similar thing was done when upgrading national currencies to the Euro: https://europa.eu/european-union/about-eu/euro/exchanging-na...
Re: Tether Fined $41M for Lying About Reserves
#16> there was never more than $61.5 million backing Tether, even as more 442 million coins were circulating at one point. Ah, pulling the classic "fractional reserve" I see.
fiat debasing the currency. What I find ironic is that the crypto ecosystem still ended up with something like central banks, only in this case their mandate is make money for its owners, and they have no accountability or obligation to serve the general public.
Play centralized games, win centralized prizes.
Re: Tether Fined $41M for Lying About Reserves
#17What is the average daily net inflow of US dollars into Tether? How many days of net inflow is $41M?
Re: Tether Fined $41M for Lying About Reserves
#18I don't understand why this is something they can settle rather than something that gets them completely shut down.
The SEC is in the business of protecting investors not destroying peoples savings over a few inaccuracies.
Why would misleading statements ever result in a shutdown of a company instead of a fine?
Re: Tether Fined $41M for Lying About Reserves
#19I don't understand why this is something they can settle rather than something that gets them completely shut down.
Or why outright lying that every Tether was backed by a U.S. dollar is termed “misleading”. It’s incredible - they had 4x as much Tether as dollars backing it and lied about audits taking place that never happened.
More than 7x ("at one point")
Re: Tether Fined $41M for Lying About Reserves
#20I don't understand why this is something they can settle rather than something that gets them completely shut down.
I'm more surprised that anyone still holds Tether, unless they're stuck with it. The company has been caught in lies several times before, it's not as if a $41M fine will turn them honest.