So why hasn't the bottom fallen out of Tether yet?
If they lost $850m they may have $1150m or so left in cash and can use that to support the tether price.
So anyone currently holding USDT is playing a ~$1B game of musical chairs?
Crypto Market Roiled by New Allegations Against Tether, Bitfinex
51–60 of 317 posts
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#52I think the news was out for some time and only now the rumor started to confirm. Tether is trading at exactly $1/$1 on Kraken. It had touched $0.85/$1 on October 2018 though. It was discounted for the last quarter of the last year. The discount lasted for several months suggesting lack of liquidity and possibly lack of funds. The Tether discount suddenly disappeared. And suddenly a discount/premium appeared on Bitfi…
You are holding counterfeit money and hoping you can offload it before the shit hits the fan. When everyone starts running for the exit, you may not be in the front of the pack.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#53Here's the filing: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet...
This is riveting. I find myself wanting to give you pull quotes but honestly just scroll down, especially to the points where they quote chats that Bitfinex showed them under subpoena.
The only way it could get even more interesting (though probably unlikely) is if the same people behind Bitfinex and Tether (who are indeed the same people - Tether offered a Line of Credit to Tether, and the same two people signed the documents for both sides - wasn't that another of their lies, that they had no relation to each other??), are also behind Crypto Capital?
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#54Is this a surprise to anyone? I was under the impression that even the most ardent HODL-er thought Tether was, at best, a very risky investment, and more likely a total scam.
But from this, it looks like Bitfinex was completely amateur hour, and that—but for Tether being raided to cover the results of that—Tether might not have been a scam at all.
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#55Doesn't sound like the $850M went missing, more like someone cashed out. Unless hiring a company to do what you say your company is doing, then handing it all your funds immediately, allows any other conclusion.
I'm not sure how you came to this conclusion. Bitfinex sent $850M to allow withdrawals to be paid, but very few, if any, were. Witness communications like "you said this would be resolved, but that was a month ago, and not a single wire transfer has taken place".
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#56It's almost like unregulated financial institutions have a tendency to screw over their customers... No one could have predicted this in the consistently solvent, regulated, and trustworthy cryptocurrency market. It's too bad bitfinex got ripped off by a surely unrelated entity. /s Have we learned our lesson yet?
Don't you know, the government is no better than a drug dealer, we'd all be better off without them.
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Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#57The article: A cryptocurrency exchange that claims real dollars back its popular digital coin Tether raided those reserves to cover up $850 million that went missing, the New York Attorney General’s office said Thursday. State Attorney General Letitia James said Hong Kong-based iFinex Inc., which operates the Bitfinex cryptocurrency exchange and owns Tether Ltd., has been commingling client and corporate funds to cov…
This reads like 850M just went straight to some entity in Panama. "Missing". Please. Conveniently, in Panama too.
> "Accord ing to documents prov ided to OAG by Respondents, and based on
statements made by counse l fo r Respondents to OAG attorneys. an individual at Crypto Capi tal
told the senior Bitfinex executive the reason that funds total ing $851 mil lion cou ld not be
returned to Bitfinex was because the funds were seized by governmental authorities in Portugal.
Poland. and the Un ited States. Based on statements made by counsel for Respondents to O/\G
attorneys. Respondents do not believe Crypto Capital's representations that the funds have been
seized."
https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet...
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#58[deleted]
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#59here goes btc again to 3k
Re: Crypto Market Roiled by New Allegations Against Tether, Bitfinex
#60The article: A cryptocurrency exchange that claims real dollars back its popular digital coin Tether raided those reserves to cover up $850 million that went missing, the New York Attorney General’s office said Thursday. State Attorney General Letitia James said Hong Kong-based iFinex Inc., which operates the Bitfinex cryptocurrency exchange and owns Tether Ltd., has been commingling client and corporate funds to cov…
This reads like 850M just went straight to some entity in Panama. "Missing". Please. Conveniently, in Panama too.
> This reads like 850M just went straight to some entity in Panama
No, it was around $1bn, $851m is just what Bitfinex lost access to when the entity spun out the “all the money we were holding for you got seized by various governments so we can't handle your payouts” line.