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

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

#81

Post by pfisch »

SkyMarshal wrote: post #79
pfisch wrote: post #73

Earlier quoted context omitted.

>The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve. Banks are insured, and in general they haven't failed for the last like 100+ years. I do think what you are saying about usdt is mostly true though, however if(when) usdt does fail the entire market will take a dive off a cliff. So even if your assets are in other cryptos it still represents a syste…

>Banks are insured, and in general they haven't failed for the last like 100+ years. Not sure what you're trying to say here, given Bear Stearns and Lehman just failed ~11yrs ago, and the entire banking system would have imploded if not for trillions in Fed lending support and govt stimulus.

Those were not consumer banks. I don't think anyone actually lost their account balances.

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

#82

Post by ravingraven »

repomies691 wrote: post #68
pfisch wrote: post #66

Earlier quoted context omitted.

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 d…

>The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve.

Yes, but doesn't Tether promise that they back each coin with a dollar? I would care very much if I found out that the issuing party is lying.

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

#83

Post by bitreality »

chx wrote: post #80
repomies68 wrote: post #44

Earlier quoted context omitted.

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.

ROTFLMAO Are you serious? You need to establish presence at an exchange meaning you need to scan and send your ID to a company which more likely than not -- does QuadrigaCX ring a bell -- is run by scammers. Then you need to buy bitcoin and store it somewhere... and then send it to someone. The sending costs an unknown amount, takes an unknwon amount of time, the receiver gets something but none of you can predict ho…

For people who know what they are doing, Bitcoin provides a new way to move money across borders. Almost always, the fees will be lower than they would with any other money transfer service. Most money transfer services will also have KYC policies which closely mirror what is required at crypto exchanges.

You only need to hold Bitcoin for ~1 hour total in the entire process. You can avoid making international wires by using domestic payment systems on each end of the transaction. If you do some research, you may be able to move money across borders and actually make a small profit of 3-4%, depending on the sending / receiving currency.

All said and done, Bitcoin allows people to have much greater control of their money. It is very useful for moving money between countries without subjecting yourself to the wait times and high fees associated with cross-border transactions.

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

#84

Post by colechristensen »

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.

It is enormously difficult to promote securities legally. Disclosing a conflict of interest is the tip of the iceberg.

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

#85

Post by arcticbull »

repomies691 wrote: post #74
gerikson wrote: post #69

Earlier quoted context omitted.

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.

I'm just saying that tether has worked for years, and the peg seems to be still there. All those years also people have been saying that tether will lose its liquidity any moment. Might be but tha market data says what it says. As I said I haven't used tether and highly probably will never use it - I don't have any use case, bitcoin is enough for me. However if I had some use-case for moderate amount and months of ti…

Tether has not worked for years, they say on their website they're not redeemable for dollars ever. Yes, I suppose by that metric chuck-e-cheese tokens work too, but you'd have the same luck trying to get your cash back out of either. It's "worked" on a hope and a prayer because crypto-to-crypto exchanges who can't achieve AML/KYC compliance rely on it. How else are the narcos and the sanctioned supposed to launder their proceeds? When this whole thing goes tits up how long do you think it'll take before the founders go "missing" like Gerald Cotten?

Their CEO literally tried to start a ponzi scheme right before he kicked off Tether haha (https://steemit.com/bitcoin/@binyamin/bitfinex-s-founder-see...) and you trust these people that they're just plain sitting on BILLIONS of dollars?

You know what they say, first you go broke slowly, then all at once.

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

#86

Post by arcticbull »

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.

May I point you to @bitfinexed for all the proof you can handle? https://medium.com/@bitfinexed

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

#87

Post by arcticbull »

SkyMarshal wrote: post #79
pfisch wrote: post #73

Earlier quoted context omitted.

>The majority of markets don't care if it is 100% backed, like they don't care when their bank does fractional reserve. Banks are insured, and in general they haven't failed for the last like 100+ years. I do think what you are saying about usdt is mostly true though, however if(when) usdt does fail the entire market will take a dive off a cliff. So even if your assets are in other cryptos it still represents a syste…

>Banks are insured, and in general they haven't failed for the last like 100+ years. Not sure what you're trying to say here, given Bear Stearns and Lehman just failed ~11yrs ago, and the entire banking system would have imploded if not for trillions in Fed lending support and govt stimulus.

Not only were those investment banks, they were insured by the SIPC which actually protects the investments they've got on deposit. In 2008 WaMu and about a local bank a week went under and yet thanks to the FDIC no retail banking customer lost a single penny. That's why it's there. I swear if ECON101 was mandatory crypto wouldn't exist.

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

#88

Post by arcticbull »

pfisch wrote: post #81
SkyMarshal wrote: post #79

Earlier quoted context omitted.

>Banks are insured, and in general they haven't failed for the last like 100+ years. Not sure what you're trying to say here, given Bear Stearns and Lehman just failed ~11yrs ago, and the entire banking system would have imploded if not for trillions in Fed lending support and govt stimulus.

Those were not consumer banks. I don't think anyone actually lost their account balances.

That's the SIPC for ya (https://www.sipc.org)

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

#89

Post by arcticbull »

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…

Nope, it is that clear cut. Some coiners tried to convince the SEC crypto-to-crypto exchanges were like kind 1031 exchanges and the SEC had none of it. If you've been under the impression it was not a taxable event, you should solicit a very competent tax attorney to get you out of whatever hole you're looking up from the bottom of.

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

#90

Post by colechristensen »

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.

Most of their executives live in NY. Most of their largest investors live in NY. They assisted investors in creating offshore business entities. They used NY accounting firms.

They could simply arrest employees, freeze their assets, and charge them with crimes. Then freeze assets and charge banks that did business with them, similar for investors.

If it wasn't a company largely run by and for Americans living in New York it would be a different story.

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