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There are also rumors that Deltec has been hacked, which is the bank Tether supposedly uses to "back" the Tether stablecoin. Supposedly there is one dollar for

by adflux 6y ago

There are also rumors that Deltec has been hacked, which is the bank Tether supposedly uses to "back" the Tether stablecoin. Supposedly there is one dollar for each tether, but its looking more and more like that is not the case. https://www.coindesk.com/nyag-tether-bitfinex-loan-documents-coming-weeks https://www.coindesk.com/nyag-tether-bitfinex-loan-documents... https://twitter.com/deltecleaks https://twitter.com/deltecleaks I have not fact checked the leaks. EDIT: https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal https://ag.ny.gov/press-release/2021/attorney-general-james-... NYAG taking action against Bitfinex/Tether!

lifty 6y ago
It looks like they settled for $18.5 million and Bitfinex has to stop activity in NY.
dylkil 6y ago
"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices," said Weinstein, a former federal prosecutor.[1] [1]https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne...
- adflux 6y ago
  3. The next day, November 2, 2018, Tether made the first of five transfers ultimately totaling $475 million from its bank account at Deltec Bank to Bitfinex’s account at Deltec Bank. At the same time, a corresponding transfer was made from Bitfinex’s account at Crypto Capital to Tether’s account at Crypto Capital via ledger entry Bitfinex also “purchased” 150 million tethers by transferring $150 million in funds held at Bitfinex’s Crypto Capital account to Tether’s account at Crypto Capital. These transfers were not disclosed. 44. And so, as of November 2, 2018, tethers were again no longer backed 1-to-1 by U.S. dollars in a Tether bank account, because a substantial portion of the backing in the Deltec account had been transferred to Bitfinex to make up for the funds taken by Crypto Capital, while the corresponding funds transferred from Bitfinex’s Crypto Capital account to Tether’s Crypto Capital account were impaired by Crypto Capital’s actions. 45. Tether’s misrepresentation would continue until late February 2019, at which time Tether updated its website to note that “[e]very tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).” Tether did not announce that it had changed its disclosure, and indeed there were no media reports about the change until several weeks later on March 14, 2019 Read the settlement... https://ag.ny.gov/sites/default/files/2021.02.17_-_settlement_agreement_-_execution_version.b-t_signed-c2_oag_signed.pdf https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen...
Ancapistani 6y ago
I am not up to speed on this, but I’ve long considered Tether to be extremely harmful to the cryptocurrency community as a whole and to Bitcoin in particular. As a result I’ve not purchased additional cryptocurrency in several years. The first bull run after the inevitable correction when the situation with Tether is resolved is my personal signal to buy.

by adflux 6y ago

lifty 6y ago

It looks like they settled for $18.5 million and Bitfinex has to stop activity in NY.

dylkil 6y ago

"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices," said Weinstein, a former federal prosecutor.[1] [1]https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne...

adflux 6y ago
3. The next day, November 2, 2018, Tether made the first of five transfers ultimately totaling $475 million from its bank account at Deltec Bank to Bitfinex’s account at Deltec Bank. At the same time, a corresponding transfer was made from Bitfinex’s account at Crypto Capital to Tether’s account at Crypto Capital via ledger entry Bitfinex also “purchased” 150 million tethers by transferring $150 million in funds held at Bitfinex’s Crypto Capital account to Tether’s account at Crypto Capital. These transfers were not disclosed. 44. And so, as of November 2, 2018, tethers were again no longer backed 1-to-1 by U.S. dollars in a Tether bank account, because a substantial portion of the backing in the Deltec account had been transferred to Bitfinex to make up for the funds taken by Crypto Capital, while the corresponding funds transferred from Bitfinex’s Crypto Capital account to Tether’s Crypto Capital account were impaired by Crypto Capital’s actions. 45. Tether’s misrepresentation would continue until late February 2019, at which time Tether updated its website to note that “[e]very tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).” Tether did not announce that it had changed its disclosure, and indeed there were no media reports about the change until several weeks later on March 14, 2019 Read the settlement... https://ag.ny.gov/sites/default/files/2021.02.17_-_settlement_agreement_-_execution_version.b-t_signed-c2_oag_signed.pdf https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen...

Ancapistani 6y ago

I am not up to speed on this, but I’ve long considered Tether to be extremely harmful to the cryptocurrency community as a whole and to Bitcoin in particular. As a result I’ve not purchased additional cryptocurrency in several years. The first bull run after the inevitable correction when the situation with Tether is resolved is my personal signal to buy.