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So if Tether was FDIC backed, then you’d technically be OK with this situation?

• bomb199 9y ago
  Not OP, but I presume the regulations would be important too. Part of being FDIC backed is maintaining a certain amount of currency that is VERIFIED. Issue here is that there is no one giving confidence that Bitfenix has any currency at all, we have to trust their word.
• freeone3000 9y ago
  If Tether was FDIC backed, it'd essentially be a bank with weird procedures for putting money in and getting money out.
• jandrese 9y ago
  Actually yes, because FDIC backing would mean they've gone through all of the necessary steps to become a real bank. I would have some confidence that they actually have the USD to back up their holdings as they claim. If still turn out to be a scam then at least I'd have something to fall back on, and some people over at the FDIC would have some questions to answer.
• theptip 9y ago
  No, as I said, > Tether is sold as a fully-backed instrument, so there's major (potentially billions of dollars of) fraud if it's not fully backed The fraud issue (not to mention the securities price manipulation issue) is still a big deal.