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Good summary. There’s also the accusation that a lot/most of those tethers were not paid for at all and simply minted and used to purchase Bitcoin.
by mhmiles 9y ago
Good summary. There’s also the accusation that a lot/most of those tethers were not paid for at all and simply minted and used to purchase Bitcoin.
- bhouston 9y agoExactly. There is some circumstantial evidence that Tether printing may be inflating bitcoin prices: http://www.tetherreport.com/ http://www.tetherreport.com/ But it is just circumstantial at this point. There are a lot of ifs related to Tether, but it has that fishy feeling to it. While I think there is a very good chance that Tether is not backed by USD, I think the regulators may actually be more interested in USDT being used for money laundering and non-reporting of investment proceeds. In fact, that is likely a larger crime with respect to US regulators.
- jboggan 9y agoThat would be the SEC's domain. If CFTC is getting involved it's probably because they are potentially manipulating the price on a regulated futures contract.
- deleted 9y ago[deleted]
- AlexCoventry 9y agoBut bitcoin futures didn't start until Dec 17, and the subpoena was sent Dec 6, so that would imply they're messing in futures based on some other commodity.
- jboggan 9y agoYou are correct about the dates but the regulatory planning and preparation for the CFTC regarding the futures contracts has been a long process. CFTC had jurisdiction and interest in assessing asset pricing conditions leading up to the contract launch.