Tether loaned USDT to investors and illegally traded in New York, says NYAG
1–10 of 133 posts
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#2oh man, I'm in New York and I've got Tethers. Time to pull the eject cord (on both)
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#3Quick - someone call the SEC!
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#4I still don't see how the State of New York can claim jurisdiction. I mean, it can "claim it" but good luck getting Bitfinex and Tether to comply.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#5oh man, I'm in New York and I've got Tethers. Time to pull the eject cord (on both)
If you don't mind me asking, what did you get the tethers for?
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#6oh man, I'm in New York and I've got Tethers. Time to pull the eject cord (on both)
Serious question. What is the reason for holding Tethers?
They a supposedly pinned to the dollar, so there isn't much point in holding them hoping they will gain in value. If anything their peg is questionable so they are only likely to decrease in value.
As far as I can see their only purpose is a a way of transferring between other crypto currencies and exchanges, but you would only ever need the tethers very short term while you completed the movement or transaction.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#7I still don't see how the State of New York can claim jurisdiction. I mean, it can "claim it" but good luck getting Bitfinex and Tether to comply.
The article says after being banned from doing business in New York, they opened up offshore shell companies to open accounts with NY banks, engaged accounting firms in NY, and dealt directly with NY based investors.
That is pretty solidly doing business in New York.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#8USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware.
If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance after Tether. Most likely you would prefer USDC over tether.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#9oh man, I'm in New York and I've got Tethers. Time to pull the eject cord (on both)
Serious question. What is the reason for holding Tethers? They a supposedly pinned to the dollar, so there isn't much point in holding them hoping they will gain in value. If anything their peg is questionable so they are only likely to decrease in value. As far as I can see their only purpose is a a way of transferring between other crypto currencies and exchanges, but you would only ever need the tethers very short…
The reason is when you have some other crypto holding and you want to close out your position but not have any reportable tax or legal liability.
Of course you’re trading one set of liabilities and legal ramifications for a whole new set. Plus a hell of a lot of counter party risk.
Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG
#10Earlier quoted context omitted.
Serious question. What is the reason for holding Tethers? They a supposedly pinned to the dollar, so there isn't much point in holding them hoping they will gain in value. If anything their peg is questionable so they are only likely to decrease in value. As far as I can see their only purpose is a a way of transferring between other crypto currencies and exchanges, but you would only ever need the tethers very short…
The reason is when you have some other crypto holding and you want to close out your position but not have any reportable tax or legal liability. Of course you’re trading one set of liabilities and legal ramifications for a whole new set. Plus a hell of a lot of counter party risk.
So to clarify... If you were holding bitcoin, but decided you wanted out because you think it's about to go down, you'd exchange for tether and hold that instead until you decided that bitcoin is ready to start going back up again.
And you accept all the associated risk rather than fully cashing out to real dollars because your jurisdiction doesn't treat crypto to crypto purchase as a taxable event?
Interesting. Thank you.