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Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

finance.yahoo.com

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Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#51

Post by rossdavidh »

woodruffw wrote: post #35

Weird phrasing. It isn't clear that responding to OFAC listings makes one a "partner" of the FBI or Secret Service; to my knowledge, entities that do business in the US (or anywhere the US's financial limbs can reach) have to respond to OFAC listings. Am I missing something here?

I mean, basically you're correct, but they are claiming that they don't have to be pulled kicking and screaming into compliance, but rather they are easy for law enforcement to work with.

In other words, please don't let the SEC find an excuse to go after us.

To me, it's oddly reminiscent of SBF testifying to Congress that they were the responsible ones who are in favor of regulation on crypto, in order to polish their image as a reputable financial institution. Doesn't mean they're going to end up like SBF (or CZ), but it does reveal similar motivations.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#52

Post by duskwuff »

mteam88 wrote: post #46
woodruffw wrote: post #35

Weird phrasing. It isn't clear that responding to OFAC listings makes one a "partner" of the FBI or Secret Service; to my knowledge, entities that do business in the US (or anywhere the US's financial limbs can reach) have to respond to OFAC listings. Am I missing something here?

I think it relates to this quote from the article: "Tether is grateful for the opportunity to address the concerns raised by U.S. lawmakers, and we are committed to continuing Tether’s close work with law enforcement in the U.S. and globally. Tether seeks to be a world class partner to the U.S. as we continue to assist law enforcement and expand dollar hegemony globally." ~ a dedication to working together in the fut…

Which is itself a weird phrasing. OFAC compliance is an obligation, not an "opportunity".

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#53

Post by lern_too_spel »

WhereIsTheTruth wrote: post #21
lern_too_spel wrote: post #15

Earlier quoted context omitted.

The letter reported here specifically mentions the FBI and doesn't mention the CIA. The press doesn't mention the CIA because it isn't in the letter the article is about. https://assets.ctfassets.net/vyse88cgwfbl/6KDtp7U4IcH03zPWnp...

Of course, now ask yourself what the FBI will to an organization that's washing money using crypto in Qatar? What the FBI gonna do? FBI = domestic letter: "as we continue to assist law enforcement and expand dollar hegemony globally." globally, what the FBI gonna do globally? CIA has all 'rights' and capacity to act as whoever they want Up to the reader to critically think in a way that permits yourself to ask, again…

That Tether expands dollar hegemony is just the story Tether tells the US government to try to convince it not to shut Tether down completely and instead work with Tether to recover dollars backing Tethers in sanctioned wallets. If Tether were backed by another currency, the US government would have less leverage, but it would also be worth less to malicious actors.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#54

Post by s1artibartfast »

duskwuff wrote: post #52
mteam88 wrote: post #46

Earlier quoted context omitted.

I think it relates to this quote from the article: "Tether is grateful for the opportunity to address the concerns raised by U.S. lawmakers, and we are committed to continuing Tether’s close work with law enforcement in the U.S. and globally. Tether seeks to be a world class partner to the U.S. as we continue to assist law enforcement and expand dollar hegemony globally." ~ a dedication to working together in the fut…

Which is itself a weird phrasing. OFAC compliance is an obligation, not an "opportunity".

Perhaps "the opportunity to address the concerns" is in contrast to being shut down with no opportunity for corrective action.

Kinda like someone released on parole is happy for an opportunity to work and obey the law.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#55

Post by Geisterde »

rossdavidh wrote: post #51
woodruffw wrote: post #35

Weird phrasing. It isn't clear that responding to OFAC listings makes one a "partner" of the FBI or Secret Service; to my knowledge, entities that do business in the US (or anywhere the US's financial limbs can reach) have to respond to OFAC listings. Am I missing something here?

I mean, basically you're correct, but they are claiming that they don't have to be pulled kicking and screaming into compliance, but rather they are easy for law enforcement to work with. In other words, please don't let the SEC find an excuse to go after us. To me, it's oddly reminiscent of SBF testifying to Congress that they were the responsible ones who are in favor of regulation on crypto, in order to polish the…

I dont think they will end up like cz, they are one of the biggest buyers of government bonds. The way skeptics in the space take it is that they offer an outlet for a cbdc thats compatible with the existing banking system.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#56

Post by charcircuit »

dannyw wrote: post #48
charcircuit wrote: post #38

Earlier quoted context omitted.

It's the collateral that would be frozen. It's not your stablecoins.

Without collateral, your stable coin would no longer be stable.

With your stable coin frozen it is worth $0.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#57

Post by junofan »

fsmv wrote: post #27
scaredginger wrote: post #23

Earlier quoted context omitted.

Can you explain this 'common sense'? I was under the impression that Tether was in the business of taking USD (with the promise of returning it) and earning interest on that USD without paying any interest on it. If that's true, it sounds like a dream business to me

The common sense is that they would make a lot more money by doing fractional reserve (leaving them open to a bank run collapse) and there is nothing really to stop them from doing that.

You have to look at the system as a whole. They run Bitfinex, a centralized exchange. They can just change balances in a database, like FTX. There’s no need for fractional reserve.

Tether is simply shadow banking and brings liquidity into Bitfinex. It’s very simple:

1. Export finished goods from China for dollars.

2. Import inputs for step 1 from places like Turkey, Ukraine, and others and pay inflated invoices with dollars from step 1.

3. Receive Tether out-of-band for step 2.

4. Swap Tether for dollars on Bitfinex.

5. Buy property in Western countries in the names of your children who have US, Canadian, and UK passports.

Reverse the steps for redemption.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#58

Post by redcobra762 »

ForHackernews wrote: post #43
redcobra762 wrote: post #41

Earlier quoted context omitted.

As with most common sense, that’s completely wrong. Deceptively operating at a fractional reserve would eventually end with everyone involved losing everything and spending large portions of their remaining lives in prison. Common sense is rarely either.

Certainly nobody involved in cryptocurrency has ever been known to take dumb risks, lose everything, and end up rotting in prison.

Good point, let’s presume literally all of crypto is actively doing all of our worst fears, and not bother with a pesky thing like proof.

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#59

Post by hanniabu »

bilbo0s wrote: post #18
kristjank wrote: post #9

That might explain why it has not crashed completely yet. As a rule of thumb, never trust service providers that should, by all common sense, fail, but miraculously don't.

The thing is, a lot of people just assume they must simply be doing good business. The continued existence of the economically impossible entity is, to many, proof not only of its solvency, but also of it's quality as a financial partner. Most people don't look any further than that. Obviously, a large number do look further than that, and many, many people would never take the bait. But don't underestimate the numbe…

You're acting like people just have blind faith, ignoring they undergo routine audits

Re: Tether reveals partnerships with Secret Service, FBI in letter to U.S. Senate

#60

Post by agentgumshoe »

s1artibartfast wrote: post #54
duskwuff wrote: post #52

Earlier quoted context omitted.

Which is itself a weird phrasing. OFAC compliance is an obligation, not an "opportunity".

Perhaps "the opportunity to address the concerns" is in contrast to being shut down with no opportunity for corrective action. Kinda like someone released on parole is happy for an opportunity to work and obey the law.

Still not a partnership. Tether spin.
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