Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Tether Critical Announcement

tether.to

Post reply on HN
Print view View original

191–200 of 327 posts

Re: Tether Critical Announcement

#191

Post by repomies691 »

ActsJuvenile wrote: post #176
darawk wrote: post #158

Earlier quoted context omitted.

It's perfectly reasonable to assume $600 million has flown in via Taiwan. Note that that doesn't mean that local Taiwanese have personally bought $600 million. Tether creates an arbitrage opportunity. If you have a Taiwanese bank account, whenever Tether gets out of sync, to say, 0.99, you can simply arbitrage that away and make a risk-free profit. That is what is happening. The demand isn't coming from Taiwan per se…

No one is going to deposit 600 mill in a hacked exchange via Tether crypto-Hawala using Taiwanese shell bank accounts. People with real money would instead wire the funds to Gemini or ItBit or even a terribly managed company like Coinbase. KISS

You sound like you are living in the US, and everything is simple there and works as described. Which is probably true for you, as I understand those are exchanges catered towards US customers. However the mistake is that you assume that the rest of the world (majority) works the same way.

Re: Tether Critical Announcement

#192

Post by jstanley »

ActsJuvenile wrote: post #177
darawk wrote: post #152

Earlier quoted context omitted.

I was a Bitfinex customer when they got hacked. I lost 30% of my funds on that day. I couldn't be happier with how they handled it. They paid me back in full and did the best they could with the situation they had. People being upset with them over it is insane to me. As far as I can tell, it's mostly people who had nothing to do with it spectating from the sidelines. If an exchange you use ever gets hacked, I certai…

Only a shill would claim to be happy with a 30% haircut scenario. Flagged.

Only a shill would claim that what happened was a 30% haircut...

Re: Tether Critical Announcement

#193

Post by ActsJuvenile »

mrb wrote: post #150
ActsJuvenile wrote: post #116

Earlier quoted context omitted.

They just got hacked for $30 mil. Pretty safe to say they are in the red at this time.

No. They blacklisted the stolen tethers, and all they now have to do is issue a new batch of $30 million worth of tethers. In no way this puts them in the red.

Stolen Tethers were transferred to a known Bitfinex Exchange deposit address. The hackers bought Bitcoins within an hour and took off with their loot.

Reversing Tether tx does nothing to recover those Bitcoins.

Re: Tether Critical Announcement

#194

Post by mrb »

iamthirsty wrote: post #165
mrb wrote: post #154

Earlier quoted context omitted.

Bitfinex already fully financially recovered from the 119k BTC theft by repurchasing the last of the BFX debt tokens a few months ago.

...with suspiciously issued Tethers, which is kinda the whole point here.

But it doesn't matter. From a legal aspect, customers who accepted to sell their BFX tokens are no longer creditors to Bitfinex.

Re: Tether Critical Announcement

#195

Post by ActsJuvenile »

mrb wrote: post #190
simias wrote: post #184

Earlier quoted context omitted.

As as been pointed out above they can't unilaterally blacklist tethers, the other parties have to accept the modified client.

But since Tether Limited are the ones who back the tokens with real dollars, they can effectively unilaterally pressure anyone to upgrade the client. Those who don't upgrade and accept stolen tethers will be left with worthless unredeemable tokens.

Read this lawsuit: Tether only has $50 mill and their wires have been frozen by Wells Fargo since March 2017. So the remaining $600 mill tokens are backed by nothing.

http://article78againstnydfs.com/docs/317-cv-01882-BitfinexC...

Re: Tether Critical Announcement

#196

Post by jstanley »

zaarn wrote: post #160
mdpopescu wrote: post #82

Earlier quoted context omitted.

We know. The point was that it's malum prohibitum (a crime because it's forbidden), not malum in se (evil by itself). [1] [1] https://en.wikipedia.org/wiki/Malum_prohibitum

I don't really see a difference between the two. The first is what everyone can agree on is evil and the later is what we haven't agreed on (or not yet). To quote from the page on malum in se; "The phrase is used to refer to conduct assessed as sinful or inherently wrong by nature, independent of regulations governing the conduct", which I don't think is a thing tbh.

Murdering your wife is wrong by nature.

Moving some money around without telling the government is only illegal because it's illegal.

To me, the difference is whether or not there is a victim. No victim, no wrongdoing.

Re: Tether Critical Announcement

#197

Post by GreaterFool »

> As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens

Rip Tether. I'd expect everyone to stop accepting Tether transactions effective immediately. Tether just made their own security breach a collective responsibility. Now you have two types of coins: the clean ones and tainted ones that are useless.

Re: Tether Critical Announcement

#198

Post by ActsJuvenile »

mrb wrote: post #157
jack_pp wrote: post #112

Earlier quoted context omitted.

"market cap" is a very bad representation of the overall value which is impossible to actually estimate. try selling 600 million worth of btc and see how that cap changes.

5 BILLION dollars worth of bitcoins are sold every day. The trading volume is higher and the orderbooks are deeper than you think...

Google "Wash Trading"

Re: Tether Critical Announcement

#199

Post by [deleted] »

patio11 wrote: post #4

If you haven't been following along, here's why this matters: Tethers is a sole-source cryptocurrency, pegged to the US dollar. Bitfinex produces it, though they're cagey (some would say outright lying at times) about the level of involvement. The primary purpose of tethers is money laundering, even more so than cryptocurrency generally. Bitfinex was cut off from the US financial system, which makes it impossible for…

[deleted]

Re: Tether Critical Announcement

#200

Post by BLanen »

darawk wrote: post #80
patio11 wrote: post #4

If you haven't been following along, here's why this matters: Tethers is a sole-source cryptocurrency, pegged to the US dollar. Bitfinex produces it, though they're cagey (some would say outright lying at times) about the level of involvement. The primary purpose of tethers is money laundering, even more so than cryptocurrency generally. Bitfinex was cut off from the US financial system, which makes it impossible for…

...except that Tether long predates Bitfinex's wire issues. They're usable on many of the major exchanges (Bittrex, Poloniex, for example). Tether was explicitly created for the purpose of equalizing prices across exchanges. It's indeed possible that they're insolvent, but there is no real evidence of that, just lots of people speculating incessantly without much justification. Basically everything about the parent c…

And their previous CEO just 'forgot' to update his twitter status for two years of not being the CEO.

And the company officers are currently actually bitfinex people?

Total coincidence.

Post reply on HN