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Tether Fined $41M for Lying About Reserves

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Re: Tether Fined $41M for Lying About Reserves

#231

Post by impulser_ »

honksillet wrote: post #214
paulgb wrote: post #20

Earlier quoted context omitted.

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.

Does anyone “hold” tether? As a stable coin isn’t it something you just use on the very short term?

You hold it if you want to use the money to trade crypto, because banks really don't like you moving around large amounts of money.

So you hold USDT in a wallet instead of transferring it back to the bank. It's also a lot faster to transfer money using stablecoins then it is with banks.

Re: Tether Fined $41M for Lying About Reserves

#232

Post by fancifalmanima »

kaashif wrote: post #125
frankbreetz wrote: post #108

Earlier quoted context omitted.

I believe a tether collapse would have a significant effect on the entire cryptocurrency ecosystem

It would at least open the door to more regulation, not to mention prudence on the parts of investors. I can't escape the feeling some of these risks aren't being priced in properly. I don't think very many average people are invested in crypto significantly, if at all, despite the hype, so hopefully the harm would be limited.

^ This is the reason why more folks in crypto should be worried about and enraged by tether. Inevitably, there will be a market condition that leads to tether being insolvent. And when that day comes the people that get hurt will be every day crypto holders. The people running tether will run off with many, many millions of dollars and many will wonder how the heck this happened. And it'll lead to regulation. And centralization.

Re: Tether Fined $41M for Lying About Reserves

#233

Post by hellbannedguy »

honksillet wrote: post #214
paulgb wrote: post #20

Earlier quoted context omitted.

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.

Does anyone “hold” tether? As a stable coin isn’t it something you just use on the very short term?

I think at one time Jim Cramer owned a bit of Tether, and a few other bitcoins.

He bought a house with bitcoin supposedly.

Today, he called Tether the Achilles Heel of crypto. He urged all to sell, and take profits.

(I usually do the opposite of what wacky Jimbo does though. Oh yea, that dumbolina schtick is getting old Cramer.)

Re: Tether Fined $41M for Lying About Reserves

#235

Post by iammisc »

gws wrote: post #110

Don’t really get you guys saying Tether should be shut down… the big banks get routinely fined with much bigger fines for much bigger crimes, are we gonna shut them all down then? At least Tether did not steal from nor defraud anyone. Just as a random example: https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-...

Tether defrauded almost 380 million dollars worth of peoples assets by claiming the rockets it issued could be redeemed for dollars.

And most of the banks should have been shut long ago.

Re: Tether Fined $41M for Lying About Reserves

#236

Post by iammisc »

gws wrote: post #127
ceejayoz wrote: post #116

Earlier quoted context omitted.

Tether did defraud people. They lied on their website, claiming a) audits (which they never completed a single one of) and b) 1:1 backing of each Tether with a dollar in the bank (which they didn't have).

You are right, they lied, and people could have been harmed if there were a “bank run” on Tether. But in practice there was not and nobody suffered any damage, zero, nada, nicht. While big banks got fined for actually taking money illegally out of people’s pockets and nobody said let’s shut them down

Wow with logic like that you're well cut out for a career in financial law

Re: Tether Fined $41M for Lying About Reserves

#237

Post by creepto »

frankbreetz wrote: post #108
bko wrote: post #88

Earlier quoted context omitted.

The difference is I can choose not to hold Tether. Removing my exposure to dollars as a US citizen is a lot harder. Not to mention people that are on a fixed income like my parents. So debasing fiat is a lot worse

I believe a tether collapse would have a significant effect on the entire cryptocurrency ecosystem

It would be a crash of epic proportions.

Re: Tether Fined $41M for Lying About Reserves

#238

Post by creepto »

Kiro wrote: post #71
FireBeyond wrote: post #50

Earlier quoted context omitted.

Hah. At one point Tether was claiming, during the days where they were holding on to the "1:1 backing!" that they were banking $2 billion A WEEK. And yet the cryptofans were telling us we were curmudgeons for not buying into the hype (or in this case, the bullshit).

I've never seen a cryptofan defend Tether.

Really? You never see morons wave off Tether with claims like TETHER FUD?

Oh, TETHER FUD AGAIN?

Don't make me laugh, MORE TETHER FUD.

Re: Tether Fined $41M for Lying About Reserves

#239

Post by orthecreedence »

mindslight wrote: post #156
orthecreedence wrote: post #147

Earlier quoted context omitted.

This is really interesting. I've long thought of as the US' empire being a primarily financial one (as opposed to military, like many other past empires) and I didn't even realize OFAC existed until reading your comment, much less the types of activities they engage in. This certainly cements my suspicions even more about the financial empire of the US and how they exercise that power. Thanks for the post.

What is the difference between a financial empire, a military empire, and a resource empire (eg petrodollar) ? Each aspect reinforces the others. If the US didn't have the military, it couldn't enforce financial laws outside of its borders. If the US didn't have energy, it couldn't run its military. If the US didn't have a reserve currency, then it wouldn't be able to obtain as many resources.

The difference is we use debt and currency as the primary means of control and domination, as opposed to storming in and killing people. Obviously two sides of the same coin (empire) but different methods.

Re: Tether Fined $41M for Lying About Reserves

#240

Post by gws »

gws wrote: post #110

Don’t really get you guys saying Tether should be shut down… the big banks get routinely fined with much bigger fines for much bigger crimes, are we gonna shut them all down then? At least Tether did not steal from nor defraud anyone. Just as a random example: https://www.justice.gov/opa/pr/jpmorgan-chase-co-agrees-pay-...

Will reply here rather than in all the sub-threads: I’m not saying lying is good, I’m pointing my finger at the paradox that on one side everybody is scandalized that Tether is not shut down, on the other everybody is happy to keep their money with big institutions that are proven to be even worse.
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