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So there are 34B outstanding USDT right now. In the documents I see talk about some 850M USD is missing. Are all the other ≈ 33B USDT backed? Will we only know

So there are 34B outstanding USDT right now. In the documents I see talk about some 850M USD is missing. Are all the other ≈ 33B USDT backed? Will we only know that on the first report they obliged to do each quarter? Will those reports be made public? I'm confused what to make of this.

Clewza313 6y ago
The NYAG investigation is about what happened up to 2019 or so. What has happened since (which includes printing 33 of those 34 billion) is a separate matter, and NYAG is basically saying it's irrelevant because nobody in NY should be able to use Tether/Bitfinex anymore.
- TacticalCoder 6y ago
  What's confusing is that in addition to the slap on the wrist of 18.5m and the prohibition for BitFinex to operate in NY, it is written: "agreement with iFinex, Tether, and their related entities will require them to cease any further trading activity with New Yorkers, as well as force the companies to pay $18.5 million in penalties, in addition to requiring a number of steps to increase transparency." What are these steps to "increase transparency"? On activities related to these 850m or on the 33 bn+ printed since then? To benefit whom? New Yorkers cannot use BitFinex anymore. If it's now irrelevant to the NYAG because from NY's point of view BitFinex is out, why ask for "a number of steps to increase transparency"?
raiyu 6y ago
The minting of tether accelerated in 2020 and continues in to 2021 including one week alone where $2B was minted. https://www.coindesk.com/tether-mints-record-2b-usdt-in-one-week https://www.coindesk.com/tether-mints-record-2b-usdt-in-one-...
lovedswain 6y ago
The most damning detail I've seen comes from US treasury TIC reports, which fail to reveal matching bond ownership inflow to the country that is the reputed host of Tether's segregated bank account. It is possible that Tether holds funds in some kind of strange non-interest-bearing account, but that seems highly unlikely. Another possibility is that the primary bank is actually a wrapper around some overseas correspondent bank where the funds are really held. Occam's razor: a company selling a 1:1 hedged coin should have absolutely no difficulty whatsoever proving on a daily or hourly basis that all coins are verifiably fully hedged. It should literally be the company's prime directive, and in this particular case, especially following the endless stream of controversy. The fact they haven't managed to convincingly achieve this even once in 7 years is all I need to know. The whole thing stinks terribly. Good luck for those who invest in it, but I'll be there if/when it blows up to quietly feel smug about it all

Clewza313 6y ago

The NYAG investigation is about what happened up to 2019 or so. What has happened since (which includes printing 33 of those 34 billion) is a separate matter, and NYAG is basically saying it's irrelevant because nobody in NY should be able to use Tether/Bitfinex anymore.

TacticalCoder 6y ago
What's confusing is that in addition to the slap on the wrist of 18.5m and the prohibition for BitFinex to operate in NY, it is written: "agreement with iFinex, Tether, and their related entities will require them to cease any further trading activity with New Yorkers, as well as force the companies to pay $18.5 million in penalties, in addition to requiring a number of steps to increase transparency." What are these steps to "increase transparency"? On activities related to these 850m or on the 33 bn+ printed since then? To benefit whom? New Yorkers cannot use BitFinex anymore. If it's now irrelevant to the NYAG because from NY's point of view BitFinex is out, why ask for "a number of steps to increase transparency"?

raiyu 6y ago

The minting of tether accelerated in 2020 and continues in to 2021 including one week alone where $2B was minted. https://www.coindesk.com/tether-mints-record-2b-usdt-in-one-week https://www.coindesk.com/tether-mints-record-2b-usdt-in-one-...

lovedswain 6y ago

The most damning detail I've seen comes from US treasury TIC reports, which fail to reveal matching bond ownership inflow to the country that is the reputed host of Tether's segregated bank account. It is possible that Tether holds funds in some kind of strange non-interest-bearing account, but that seems highly unlikely. Another possibility is that the primary bank is actually a wrapper around some overseas correspondent bank where the funds are really held. Occam's razor: a company selling a 1:1 hedged coin should have absolutely no difficulty whatsoever proving on a daily or hourly basis that all coins are verifiably fully hedged. It should literally be the company's prime directive, and in this particular case, especially following the endless stream of controversy. The fact they haven't managed to convincingly achieve this even once in 7 years is all I need to know. The whole thing stinks terribly. Good luck for those who invest in it, but I'll be there if/when it blows up to quietly feel smug about it all