4 ms·

"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices" I hope that ends

by jcfrei 6y ago

"Contrary to online speculation, there was no finding that Tether ever issued tethers [USDT] without backing, or to manipulate crypto prices" I hope that ends the spreading of FUD - claiming that bitcoin and other cryptos are propped up by the printing of fake tethers - which seems to spread here every time there is a sharp rise in prices.

dgellow 6y ago
Read the settlement agreement: 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... Page 4 of the agreement: > 20. Because of Tether’s inability to conduct significant banking activity during this time, it could not itself hold dollars sufficient to back the hundreds of millions of new tethers that had entered the market. Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal. That's 14% of the cash required to back the issued Tether.
tectec 6y ago
Where is that quote from? I don't see it in the linked article
- dgellow 6y ago
  It's from https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne....
- 35fbe7d3d5b9 6y ago
  https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... > Jason Weinstein, a partner at Steptoe & Johnson and counsel to Bitfinex and Tether
  - FireBeyond 6y ago
    Ahh, so their attorney said something nicely carefully worded, intended to imply to the lay person: "There was no specific finding that allegation X had absolutely occurred, so this shows that all along, allegation X has never occurred".
    - 35fbe7d3d5b9 6y ago
      Noted unbiased participant "the defendants attorney" has been quoted in a pro-Bitcoin publication ;)
    - jcfrei 6y ago
      I think you are reading too much into it. That's just how the justice system works. You don't have to prove your innocence, you have to prove someone's guilty.
PragmaticPulp 6y ago
This lawsuit only covers up to 2019, when the Tether supply was only a fraction of what it is now. It shows that Tether had no desire to correct the situation with the unbacked Tethers. Why does it matter why the Tethers were unbacked? The fact is that they were unbacked and Tether continued operating as if they were. Why would anyone trust an institution that has already demonstrated they don’t care about backing and, moreover, that they’d rather hide that fact as much as possible until forced to reveal it.
thedufer 6y ago
"there was no finding" means that they did not show that that happened, not that they showed it didn't. You're reading something into that quote it very carefully does not say.

by jcfrei 6y ago

dgellow 6y ago

Read the settlement agreement: 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... Page 4 of the agreement: > 20. Because of Tether’s inability to conduct significant banking activity during this time, it could not itself hold dollars sufficient to back the hundreds of millions of new tethers that had entered the market. Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal. That's 14% of the cash required to back the issued Tether.

tectec 6y ago

Where is that quote from? I don't see it in the linked article

dgellow 6y ago
It's from https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne....
35fbe7d3d5b9 6y ago
https://www.theblockcrypto.com/post/95207/bitfinex-tether-new-york-ag-settlement-lawsuit https://www.theblockcrypto.com/post/95207/bitfinex-tether-ne... > Jason Weinstein, a partner at Steptoe & Johnson and counsel to Bitfinex and Tether
- FireBeyond 6y ago
  Ahh, so their attorney said something nicely carefully worded, intended to imply to the lay person: "There was no specific finding that allegation X had absolutely occurred, so this shows that all along, allegation X has never occurred".
  - 35fbe7d3d5b9 6y ago
    Noted unbiased participant "the defendants attorney" has been quoted in a pro-Bitcoin publication ;)
  - jcfrei 6y ago
    I think you are reading too much into it. That's just how the justice system works. You don't have to prove your innocence, you have to prove someone's guilty.

PragmaticPulp 6y ago

This lawsuit only covers up to 2019, when the Tether supply was only a fraction of what it is now. It shows that Tether had no desire to correct the situation with the unbacked Tethers. Why does it matter why the Tethers were unbacked? The fact is that they were unbacked and Tether continued operating as if they were. Why would anyone trust an institution that has already demonstrated they don’t care about backing and, moreover, that they’d rather hide that fact as much as possible until forced to reveal it.

thedufer 6y ago

"there was no finding" means that they did not show that that happened, not that they showed it didn't. You're reading something into that quote it very carefully does not say.