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No. They blacklisted the stolen tethers, and all they now have to do is issue a new batch of $30 million worth of tethers. In no way this puts them in the red.

by mrb 9y ago

simias 9y ago
As as been pointed out above they can't unilaterally blacklist tethers, the other parties have to accept the modified client.
- mrb 9y ago
  But since Tether Limited are the ones who back the tokens with real dollars, they can effectively unilaterally pressure anyone to upgrade the client. Those who don't upgrade and accept stolen tethers will be left with worthless unredeemable tokens.
  - ActsJuvenile 9y ago
    Read this lawsuit: Tether only has $50 mill and their wires have been frozen by Wells Fargo since March 2017. So the remaining $600 mill tokens are backed by nothing. http://article78againstnydfs.com/docs/317-cv-01882-BitfinexCase/09-DeclarationJKVanDerVelde/9-main.pdf http://article78againstnydfs.com/docs/317-cv-01882-BitfinexC...
    - makomk 9y ago
      That was filed back in April when there were only $50 million Tether in existence: https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ Also, the money that's supposedly backing Tether is in Taiwanese banks, not Wells Fargo, and their problem with Wells Fargo should only affect international wires.
ActsJuvenile 9y ago
Stolen Tethers were transferred to a known Bitfinex Exchange deposit address. The hackers bought Bitcoins within an hour and took off with their loot. Reversing Tether tx does nothing to recover those Bitcoins.
- modeless 9y ago
  Source? Edit: found this: https://www.reddit.com/r/btc/comments/7e1840/the_30000000_usdt_printed_two_days_ago_have/ https://www.reddit.com/r/btc/comments/7e1840/the_30000000_us... It seems like people did in fact notice the $30m being deposited on Bitfinex and being used to buy Bitcoin, all before it was known to be stolen. Difficult to confirm a thing like this, but I wouldn't bet against it.
- status418 9y ago
  No, that is what people are thinking but its not a known bitfinex address. I think what was happening is that people are following tether issuance very closely, and every time new tethers are created they start buying bitcoin.Thats why the price went up when those $30m started to move. I also have a hard time understanding why they need to issue fake tether to drive the price up as everybody is suggesting. They own bitfinex, they can just add money that doesn't exist to the balance books and nobody would even notice, why do it in a completely transparent way? Makes no sense to me.

No. They blacklisted the stolen tethers, and all they now have to do is issue a new batch of $30 million worth of tethers. In no way this puts them in the red.

by mrb 9y ago

No. They blacklisted the stolen tethers, and all they now have to do is issue a new batch of $30 million worth of tethers. In no way this puts them in the red.

simias 9y ago

As as been pointed out above they can't unilaterally blacklist tethers, the other parties have to accept the modified client.

mrb 9y ago
But since Tether Limited are the ones who back the tokens with real dollars, they can effectively unilaterally pressure anyone to upgrade the client. Those who don't upgrade and accept stolen tethers will be left with worthless unredeemable tokens.
- ActsJuvenile 9y ago
  Read this lawsuit: Tether only has $50 mill and their wires have been frozen by Wells Fargo since March 2017. So the remaining $600 mill tokens are backed by nothing. http://article78againstnydfs.com/docs/317-cv-01882-BitfinexCase/09-DeclarationJKVanDerVelde/9-main.pdf http://article78againstnydfs.com/docs/317-cv-01882-BitfinexC...
  - makomk 9y ago
    That was filed back in April when there were only $50 million Tether in existence: https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/ Also, the money that's supposedly backing Tether is in Taiwanese banks, not Wells Fargo, and their problem with Wells Fargo should only affect international wires.

ActsJuvenile 9y ago

Stolen Tethers were transferred to a known Bitfinex Exchange deposit address. The hackers bought Bitcoins within an hour and took off with their loot. Reversing Tether tx does nothing to recover those Bitcoins.

modeless 9y ago
Source? Edit: found this: https://www.reddit.com/r/btc/comments/7e1840/the_30000000_usdt_printed_two_days_ago_have/ https://www.reddit.com/r/btc/comments/7e1840/the_30000000_us... It seems like people did in fact notice the $30m being deposited on Bitfinex and being used to buy Bitcoin, all before it was known to be stolen. Difficult to confirm a thing like this, but I wouldn't bet against it.
status418 9y ago
No, that is what people are thinking but its not a known bitfinex address. I think what was happening is that people are following tether issuance very closely, and every time new tethers are created they start buying bitcoin.Thats why the price went up when those $30m started to move. I also have a hard time understanding why they need to issue fake tether to drive the price up as everybody is suggesting. They own bitfinex, they can just add money that doesn't exist to the balance books and nobody would even notice, why do it in a completely transparent way? Makes no sense to me.