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It's probably part of their agreement with the bank(s) -- if they're even traditional banks -- not to reveal the relationship except to certain parties. And y

It's probably part of their agreement with the bank(s) -- if they're even traditional banks -- not to reveal the relationship except to certain parties. And yeah, assuming all the funds do exist, I'd be amazed if they were being held in a risk-free non-interest bearing form. Which is why it's a bit crazy that Tether sticks to the peg so well -- the NPV of a Tether accounting for even non-conspiratorial risks has got to be less than $1

panarky 9y ago
> It's probably part of their agreement with the bank(s) The point is that Tether and Bitfinex have the power to publish their bank balances, and they could authorize their banks to confirm the deposits if they wanted to. Why would they refuse to do this, even while under intense suspicion of actually not controlling 1:1 reserves, unless the accusations were true? The question of interest is a distraction. Businesses usually hold cash in money market accounts or do short-term repo agreements to get a little yield with very low risk. But that yield would be at most 2% a year, so not relevant to the real question.