Federal investigators probe Tether

Tether was launched in 2014 [1]. It has over $120bn in outstanding liabilities against unknown assets [2]. When it fails, it will rival the fourth-largest 'bank' failure in U.S. history [3].

This has been a complete failure of U.S. regulatory bodies.

[1] https://www.investopedia.com/terms/t/tether-usdt.asp

[2] https://coinmarketcap.com/currencies/tether/

[3] https://en.wikipedia.org/wiki/List_of_largest_bank_failures_...

Re: Federal investigators probe Tether

#5

Post by satvikpendem » Fri, Oct 25, 2024, 6:37 PM UTC

Ah, finally, will Tether get its day in the litigious sun? It's well known in cryptocurrency circles that their coin is not backed 1:1 to USD, similar to FTX, only that FTX crashed and this was found out the easy way. Cracking Tether will be much harder as they resist audits.

Re: Federal investigators probe Tether

#6

Post by JumpCrisscross » Fri, Oct 25, 2024, 6:38 PM UTC

satvikpendem wrote: post #5

Ah, finally, will Tether get its day in the litigious sun? It's well known in cryptocurrency circles that their coin is not backed 1:1 to USD, similar to FTX, only that FTX crashed and this was found out the easy way. Cracking Tether will be much harder as they resist audits.

> Cracking Tether will be much harder as they resist audits

If Tether is sanctioned, they can't hold most dollar-denominated assets. Certainly none of the safe or liquid ones. Figuring out why it failed may take some digging. But causing it to fail is trivial.

Re: Federal investigators probe Tether

#7

Post by dang » Fri, Oct 25, 2024, 6:41 PM UTC

outside415 wrote: post #2

[flagged]

Maybe so, but please don't post unsubstantive comments to Hacker News.

Re: Federal investigators probe Tether

#8

Post by daft_pink » Fri, Oct 25, 2024, 6:41 PM UTC

deleted. I have to figure out the exact agency and repost sorry. I thought it was the sec, but I am wrong.

Re: Federal investigators probe Tether

#9

Post by neonate » Fri, Oct 25, 2024, 6:42 PM UTC

https://www.msn.com/en-us/money/markets/federal-investigator... has the article

Re: Federal investigators probe Tether

#10

Post by SheinhardtWigCo » Fri, Oct 25, 2024, 6:43 PM UTC

JumpCrisscross wrote: post #4

Tether was launched in 2014 [1]. It has over $120bn in outstanding liabilities against unknown assets [2]. When it fails, it will rival the fourth-largest 'bank' failure in U.S. history [3]. This has been a complete failure of U.S. regulatory bodies. [1] https://www.investopedia.com/terms/t/tether-usdt.asp [2] https://coinmarketcap.com/currencies/tether/ [3] https://en.wikipedia.org/wiki/List_of_largest_bank_failures…

It really is just a bank without any of the regulatory safeguards. A disastrous outcome is inevitable.