Jesus only 6 or 7 years late! It was OPENLY KNOWN and ADMITTED IN COURT they never had the cash backing and were just printing tokens to inflate prices. Why start an investigation now?
Federal investigators probe Tether
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Re: Federal investigators probe Tether
#82Jesus only 6 or 7 years late! It was OPENLY KNOWN and ADMITTED IN COURT they never had the cash backing and were just printing tokens to inflate prices. Why start an investigation now?
AIUI it's not an investigation about whether tether has the USDT or not but an investigation as to whether or not allowed customers to launder dirty money.
Tether is in a country that has a long history of doing monkey business, including monkey business with drug trafficking money and arms trafficking money. Even the CIA was tied to that monkey business.
To me there's zero doubt there's actual money laundering ongoing and I really wouldn't be surprised if, once again, some three letter agencies were implicated in monkey bahamian business.
Re: Federal investigators probe Tether
#83Earlier quoted context omitted.
Can you link one of these investigations that show that tether is backed more than 1:1 with the USD?
This is the most recent one linked on their site[1]: https://assets.ctfassets.net/vyse88cgwfbl/6h4YWqZOXbwtBaPtYg... Edit: to save people a click, the report shows 125 Billion in assets vs 113 Billion in liabilities. Approx 81 Bil in T-bills [1] https://tether.to/en/transparency/?tab=reports
This is just Tether's unaudited financial statements.
Re: Federal investigators probe Tether
#84For those doubting that Tether is fully backed, note that Howard Lutnick, CEO of Cantor Fitzgeral, one of the largest investment banks and a public company, has stated that Cantor Fitzgeral manages Tether’s money and indeed the money is all there and invested in US treasury bonds
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Re: Federal investigators probe Tether
#85Federal investigators should probably also probe who controls that sizeable chunk of dormant bitcoin that's projected to be valued higher than a significant chunk of the US economy in a few years.
This used to be a non-serious question. But now we've got presidential candidates calling for national debt ceilings that will result in a default on US debt, and therefore crash the US dollar. Bitcoin's getting integrated into every payment app as if these companies are readying for an eventual modern equivalent of a run on the banks. Except with everyone moving their money to crypto instead of getting 'real dollars' to stuff into their mattresses.
There's a 99.99%+ likelihood that Satoshi just.. lost his wallet one day, or died, or whatever.
BUT -- assume a 0.01% possibility that there is something else at play with that early-mined bitcoin. Assume the _impact_ of a negative outcome with it will eventually be on the order of entire economies.
If you use common practice to calculate security risk by multiplying the likelihood of risk by it's potential impact, there is certainly enough at play here to justify the US government putting a couple agents on a search for a week to figure out who this guy is/was, and who now controls all of those apparently-lost coins.
Re: Federal investigators probe Tether
#86I don't know why, but the one thing cryptobros fear is OFAC. They shrug off fraud, securities violations, and money laundering but when sanctions are mentioned people start running away. We saw this with Tornado Cash and hopefully Tether will get OFACed next. BTW, Tether probably is backed 1:1 or better because they bought $XXB of US treasury bonds at >4% which return billions in profit per year. BTC is also (current…
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Re: Federal investigators probe Tether
#87How bitcoin got huge was basically tether money printing. since it wasnt backed by anything, they just printed tether and bought bitcoin. a group did it behind the scenes, got massively wealthy.
And at stupid numbers that cryptofans just ate up like it was perfectly logical. "Oh, you're banking $700M PER DAY in deposits for Tether? Sounds legit to me!"
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Re: Federal investigators probe Tether
#88delete
Re: Federal investigators probe Tether
#89Earlier quoted context omitted.
If it was that easy then we'd probably see more banks that do just that.
That is what banks do. But it’s more complicated because the current trading value of a bond is not the same as the expected return you’d get if you hold it to maturity. Last year Silicon Valley Bank and others got into trouble for this reason. Let’s say you invested $100M into a 10-year bond when interest rates were at 2%. With interest, you’ll be getting back about $122M in ten years. Nice. But what if you’re a ban…
But banks also make loans, and do fractional reserve banking, so obviously owning bonds isn't enough.
Re: Federal investigators probe Tether
#90For those doubting that Tether is fully backed, note that Howard Lutnick, CEO of Cantor Fitzgeral, one of the largest investment banks and a public company, has stated that Cantor Fitzgeral manages Tether’s money and indeed the money is all there and invested in US treasury bonds
That's nonsense. If they want to remove doubts that the money is all there they should get an audit. Refusing to get an audit is an enormous red flag.