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Agree. Regardless whether or not Tether is fraudulently backed, it is fractionally backed. 74% last year, with the remaining lent out. But I suppose that's expe
by SnowProblem 6y ago
Agree. Regardless whether or not Tether is fraudulently backed, it is fractionally backed. 74% last year, with the remaining lent out. But I suppose that's expected. Even if Tether hadn't lent out their cash, the bank they deposit into certainly would.
- raesene9 6y agoOut of curiousity what's the basis for your assertion on 74%, given that, as far as I'm aware, Tether has never completed an audit with an independent third party.
- SnowProblem 6y agoIt came from an investigation by New York's AG last year: > In fact, Tether’s reserves of cash and cash equivalents alone (without the line of credit) would cover approximately 74 percent of the outstanding amount of tether. This sort of “fractional” reserving arrangement is similar to how commercial banks work. No bank holds in liquid cash more than a small percentage of depositors’ money. The funds are invested. https://iapps.courts.state.ny.us/nyscef/ViewDocument?docIndex=JcKQms/tM52ywY78HUsInw== https://iapps.courts.state.ny.us/nyscef/ViewDocument?docInde...
- raesene9 6y agoSo an important note about that filing is that it's from iFinex and it's their opinion, it has not been established as a fact :) It may be that once they actually get to court with the NYAG they can prove this opinion to be true, however as far as I'm aware no independent auditor has confirmed the status of Tether's reserves.