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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

#91

Post by beefield »

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

Fractional reserve banks' deposits are backed more than 100% with more or less liquid assets. That's why nobody cares if a bank does fractional reserve. With tether there is no reason to believe there is even close to 100% backing. Unless you count as a reason an unverified claim that they are backed.

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

#92

Post by ifdefdebug »

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.

yes BTC:USDT will spike like hell but it will unpeg from BTC:USD.

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

#94

Post by cmmeur01 »

arcticbull wrote: post #85
repomies691 wrote: post #74

Earlier quoted context omitted.

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 t…

> How else are the narcos and the sanctioned supposed to launder their proceeds?

HSBC seems like a fine choice no?

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

#95

Post by duxup »

dmix wrote: post #34
duxup wrote: post #26

Earlier quoted context omitted.

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

> it means they are less likely to have their funds blacklisted

Why would being "sketchy" do that?

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

#96

Post by seibelj »

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 not a security, anyone can buy it accredited or not without going to a broker dealer. It's an asset backed stablecoin and you don't buy it as an investment, it's a tool to tokenize USD to get it onto the crypto network rails. It also is the #2 stablecoin by marketcap.

I will disclose that I know way more about this industry than all of you commenting that I'm "shilling" as if this is some altcoin scam. Welcome to crypto

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

#98

Post by tuesdayrain »

arcticbull wrote: post #86
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.

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

Oh yes a short seller writing articles on medium must have the unbiased truth we're looking for. The US authorities should have saved time by just contacting him instead of doing an investigation

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

#99

Post by giaour »

koolba wrote: post #9
SimonPStevens wrote: post #6

Earlier quoted context omitted.

Serious question. What is the reason for holding Tethers? They a supposedly pinned to the dollar, so there isn't much point in holding them hoping they will gain in value. If anything their peg is questionable so they are only likely to decrease in value. As far as I can see their only purpose is a a way of transferring between other crypto currencies and exchanges, but you would only ever need the tethers very short…

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. Of course you’re trading one set of liabilities and legal ramifications for a whole new set. Plus a hell of a lot of counter party risk.

Receiving the proceeds of the sale of one crypto currency in another crypto currency doesn't magically wipe out your tax liability. Your capital gains are still taxable, just as they would be if you bartered stocks without first selling your holdings.

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

#100

Post by p49k »

ravingraven wrote: post #82
repomies691 wrote: post #68

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. 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.

You’re arguing in circles. Maybe you would care, but the point OP is making is that the people who are engaging in the transactions that cause it to be pegged at $1 don’t care if Tether is lying because it doesn’t affect their use case in any significant way.
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