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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

#61

Post by solveit »

dagenix wrote: post #58
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…

seibelj has a link to his twitter account in his profile. On that account, its quite clear he works for Circle. IMO, it's pretty unethical to promote this type of investment without revealing that conflict of interest. It's also par for the course with crypto coins.

USDC is exactly not an investment, but otherwise you're not wrong.

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

#62

Post by tehlike »

SimonPStevens wrote: post #46
Alex3917 wrote: post #29

Earlier quoted context omitted.

> 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…

For us, it is a taxable event, it is pretty clear.

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

#63

Post by A2017U1 »

llamataboot wrote: post #60

Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.

Do you have any proof?

The US authorities have literally shown in court they have vast sums backing tethers. Bifinex itself is a money printing machine.

I'd love to take some serious 5 figure wagers with the people who say this stuff. Because they've been saying it for years now and have been consistently proven wrong.

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

#64

Post by grey-area »

lanrh1836 wrote: post #31

I know there are a lot of crypto skeptics here, but if you believe in Bitcoin more than Tether at least then you should buy Bitcoin...if Tether does indeed fail Bitcoin will almost certainly spike past 2017 highs.

This assumes the price of bitcoin is not manipulated, specifically by bitfinex and tether. Both may go down together when more news of manipulation comes out.

At this point, I wouldn't recommend going near any of the current cryptocurrencies, for any use.

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

#65

Post by teekert »

solveit wrote: post #61
dagenix wrote: post #58

Earlier quoted context omitted.

seibelj has a link to his twitter account in his profile. On that account, its quite clear he works for Circle. IMO, it's pretty unethical to promote this type of investment without revealing that conflict of interest. It's also par for the course with crypto coins.

USDC is exactly not an investment, but otherwise you're not wrong.

It could be if your local currency is not USD.

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

#66

Post by pfisch »

A2017U1 wrote: post #63
llamataboot wrote: post #60

Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.

Do you have any proof? The US authorities have literally shown in court they have vast sums backing tethers. Bifinex itself is a money printing machine. I'd love to take some serious 5 figure wagers with the people who say this stuff. Because they've been saying it for years now and have been consistently proven wrong.

There is no chance it is 100% backed like they claim. I would happily wager $10000 on it if a framework for such a wager existed.

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

#67

Post by repomies691 »

llamataboot wrote: post #60

Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.

If you look at market data, it looks like tether has managed to keep the peg of the asset quite well along the years. So if you have parked some of your assets to tether, you have had very good possibility to change it back to other crypto-assets any time.

I don't want to promote tether and I have never touched it myself, but when it seems to be working and liquid for many exchanged world-wide, your statements seem a little bit off. Tether may be having shitloads of issues but according to market data the issues haven't hit the end-user and the USD peg yet.

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

#68

Post by repomies691 »

pfisch wrote: post #66
A2017U1 wrote: post #63

Earlier quoted context omitted.

Do you have any proof? The US authorities have literally shown in court they have vast sums backing tethers. Bifinex itself is a money printing machine. I'd love to take some serious 5 figure wagers with the people who say this stuff. Because they've been saying it for years now and have been consistently proven wrong.

There is no chance it is 100% backed like they claim. I would happily wager $10000 on it if a framework for such a wager existed.

The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve. They care about whether the USD peg will last within their timespan they plan to use tether.

One of the most common advertised applications for tether is arbitrage between exchanges. There it hardly matters whether tether has 100% reserves, what matters if the peg stays within the days that you are doing the arbitrage (buying tether from one exchange, transfering to other, selling it).

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

#69

Post by gerikson »

repomies691 wrote: post #67
llamataboot wrote: post #60

Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.

If you look at market data, it looks like tether has managed to keep the peg of the asset quite well along the years. So if you have parked some of your assets to tether, you have had very good possibility to change it back to other crypto-assets any time. I don't want to promote tether and I have never touched it myself, but when it seems to be working and liquid for many exchanged world-wide, your statements seem a…

The main issue is what will happen when holders of USDT try to redeem them. Tether says it's immune to a bank run, because they have the entire outstanding amount of USDT (3.83B at time of writing) is backed 74% with USD.

If you believe that a company without access to banking actually has 2.8B USD available for disbursement, then you are more optimistic than I am.

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

#70

Post by FDSGSG »

teekert wrote: post #65
solveit wrote: post #61

Earlier quoted context omitted.

USDC is exactly not an investment, but otherwise you're not wrong.

It could be if your local currency is not USD.

It could be, but it's still dishonest to describe what seibelj was doing as "promoting an investment".
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