>>If a bank handles U.S. dollars, they are under U.S. jurisdiction. I've always thought of Tether as the loose cryptocurrency equivalent of a eurodollar[1] fa

>>If a bank handles U.S. dollars, they are under U.S. jurisdiction. I've always thought of Tether as the loose cryptocurrency equivalent of a eurodollar[1] facility. If the eurodollar was Bitfinex's original inspiration, then Bitfinex probably thought that keeping their USD deposits (which allegedly back Tethers 1:1) in custody of foreign banks (i.e. non-US domiciled banks) would place them outside of US jurisdiction. [1] https://en.wikipedia.org/wiki/Eurodollar https://en.wikipedia.org/wiki/Eurodollar