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I do think customer deposits is the most likely explanation, but it does not necessarily mean Tether is insolvent. My leading hypothesis is that all Bitfinex de
by sanxiyn 8y ago
I do think customer deposits is the most likely explanation, but it does not necessarily mean Tether is insolvent. My leading hypothesis is that all Bitfinex deposits are on Tether's accounts and Bitfinex holds Tethers for those deposits. If my hypothesis is true, Tether wouldn't be a fraud, although its legality is in question.
- londons_explore 8y agoThis was their way around US banking regulations right? Rather than holding dollars for you, they instead sell you tethers. Now they aren't holding client money's, but instead valueless tokens with a 'promise' to maybe redeem them for dollars later.