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Tether loaned USDT to investors and illegally traded in New York, says NYAG

decrypt.co

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Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#41

Post by [deleted] »

Lazare wrote: post #12
slappyjoe wrote: post #4

I 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.

Yeah, Bitfinex and Tether won't have anything to worry about... ...as long as they don't want to have USD denominated bank accounts, or transact with USD, or do business with people with USD denominated bank accounts. Which, of course, they do. If you touch the US financial system in any way, or if any of your counterparties do, or if your counterparties want to have other counterparties that do, then you need to car…

[deleted]

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#42

Post by floodyberry- »

duxup wrote: post #26
seibelj wrote: post #8

USDT 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 af…

"vaguely sketchy" What does that mean? That doesn't sound like a positive thing.

I think it means seibelj works for Circle and is shilling their stablecoin. The irony is that the entirety of "crypto" outside of the people doing the academic work for it is not just vaguely sketchy, but extremely sketchy.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#43

Post by kmonsen »

theturtletalks wrote: post #35
Semaphor wrote: post #32

Earlier quoted context omitted.

I always thought Tether is mainly used for parking money when trading.

My buddy was telling me he transferred bitcoin from one exchange to another. When he sold his bitcoin, he got taxed at the full value of what he sold the coin for not just his gains. Couldn’t he have just parked his funds and basically used that as a bank account?

This can happen with stocks as well, someone the agent will report 0 cost basis and IRS will believe it and you have to document the actual cost basis. For me that made the IRS happy and I think your friend could have done the same here if he can document what he bought them for.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#44

Post by repomies68 »

floodyberry- wrote: post #42
duxup wrote: post #26

Earlier quoted context omitted.

"vaguely sketchy" What does that mean? That doesn't sound like a positive thing.

I think it means seibelj works for Circle and is shilling their stablecoin. The irony is that the entirety of "crypto" outside of the people doing the academic work for it is not just vaguely sketchy, but extremely sketchy.

Well, don't know for these stablecoins but to me the "normal crypto" meaning bitcoin is very easy to understand and use. It is like commodity nowadays - it is up to the user whether to use it for scetchy things or for normal things.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#45

Post by theturtletalks »

reissbaker wrote: post #38
theturtletalks wrote: post #35

Earlier quoted context omitted.

My buddy was telling me he transferred bitcoin from one exchange to another. When he sold his bitcoin, he got taxed at the full value of what he sold the coin for not just his gains. Couldn’t he have just parked his funds and basically used that as a bank account?

Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/

He did the filing with the tax form that company sent. I think the exchange he transferred from was sketchy or not confirmed. In that case, when you sell, they show the full price.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#46

Post by SimonPStevens »

Alex3917 wrote: post #29
xur17 wrote: post #16

Earlier quoted context omitted.

> 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. In the US trading crypto to crypto has tax liabilities.

> In the US trading crypto to crypto has tax liabilities. Or, more accurately, just because you record the ownership of an asset on a blockchain doesn't mean you're allowed to violate the law.

I believe it's not as clear cut as that. I believe that in many jurisdictions there are various rules that allow trading within certain assets classes to not be treated as a taxable event for capital gains purposes unless you trade outside the class back to a regular currency. The taxable event can occur only when you realise the profit or loss.

Whether this is the case with crypto currencies is all dependent on how your particular jurisdiction has chosen to classify crypto. Or often just your best guess if your particular jurisdiction hasn't been clear on the classification as many haven't.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#47

Post by repomies68 »

reissbaker wrote: post #38
theturtletalks wrote: post #35

Earlier quoted context omitted.

My buddy was telling me he transferred bitcoin from one exchange to another. When he sold his bitcoin, he got taxed at the full value of what he sold the coin for not just his gains. Couldn’t he have just parked his funds and basically used that as a bank account?

Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/

The exchanges don't collect taxes. Tax office probably requested information from the exchange and the exchange complied, and the tax office calculated the total amount withdrawn as taxable. The idea that an exchange would be calculating taxes is ridiculous.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#48

Post by astura »

repomies68 wrote: post #47
reissbaker wrote: post #38

Earlier quoted context omitted.

Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/

The exchanges don't collect taxes. Tax office probably requested information from the exchange and the exchange complied, and the tax office calculated the total amount withdrawn as taxable. The idea that an exchange would be calculating taxes is ridiculous.

If a sale is reported to the IRS and the exchange doesn't know (or doesn't report) the cost basis of the coins then the person who sold the Bitcoin is responsible for reporting their cost basis. If they didn't report a cost basis then the IRS is going to come back and assume it's zero.

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#49

Post by astura »

theturtletalks wrote: post #45
reissbaker wrote: post #38

Earlier quoted context omitted.

Who did the tax collection? Did the exchange collect it automatically, or did your buddy do the filing? If the former, the exchange is sketchy; if the latter, your friend messed up. https://www.nerdwallet.com/blog/investing/bitcoin-taxes/

He did the filing with the tax form that company sent. I think the exchange he transferred from was sketchy or not confirmed. In that case, when you sell, they show the full price.

I mean even if the exchange messed up and took out more tax than they should have, he would just fix that at tax filing time and get a refund.

If the exchange was overseas/super sketchy it's possible that the exchange just plain stole some of his money and claimed it was "for taxes."

Re: Tether loaned USDT to investors and illegally traded in New York, says NYAG

#50

Post by jnordwick »

seibelj wrote: post #8

USDT 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 af…

Do you want to disclose that work for Circle? So maybe your opinion might be as like, more than a little biased?
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