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Bitfinex and Tether have till the 15th of January to submit documents to the New York state attorney general about their financial relationship. The shortfall o
by michaelchisari 6y ago
Bitfinex and Tether have till the 15th of January to submit documents to the New York state attorney general about their financial relationship. The shortfall of $850m was allegedly printed by Tether and given to Bitfinex to cover up the losses Crypto Capital created. It is speculated Bitfinex and Tether can't submit any documents without revealing their cover-up. This will result in the conclusion that Tether isn't backed 1:1 by USD by a lot of investors and will results in more investigation by the attorney general. Tether is unaudited at the moment, meaning no one checked the bankroll of Tether if there really is $23b USD there.
https://www.reddit.com/r/CryptoCurrency/comments/ksdfne/why_tether_might_tank_the_crypto_market_on_jan/ https://www.reddit.com/r/CryptoCurrency/comments/ksdfne/why_...
- ahelwer 6y agoThe thing is $850m isn't actually that much money. The big exchanges made on the order of several billion dollars profit during the last bubble; presumably they are also making that much in this one.
- michaelchisari 6y agoIt's not about the $850m per se, it's about the deep suspicion that Tether does not have anywhere near the $23 billion in reserves they claim to.
- WA 6y agoSounds like Wirecard and they went down 90% in a week and 99% in total within two weeks. Popcorn time.