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>By refusing to take deposits for new Tether, and by shutting down redemptions if necessary while the banking relationship is sorted out. I agree and expect th
by mikeblackson 5y ago
>By refusing to take deposits for new Tether, and by shutting down redemptions if necessary while the banking relationship is sorted out.
I agree and expect that is the lesson the $18M fine taught them.
The key point is, they had a legitimate reason for under-collateralizing during the biggest bull run in crypto history at that point. 2014-2017 was the perfect period to begin fraudulent activity if they were really interested in it.
I guess the question is, what is the best time to commit fraud in the crypto space, earlier or later (during-post increased regulatory scrutiny)?
- user-the-name 5y agoWhy do you see clear evidence that the company directly lied and acted fraudulently, and immediately assume that this must be the one single time they have ever done so? When I see that a company founded by criminals has lied, I tend to assume that they will be lying again. I think that is a fairly safe bet.
- Marazan 5y agoThey siphoned money from Tether to fund Bitfinex. This was while they did have a banking relationship. What was the exscuse then?
- jfrunyon 5y agoYou're assuming that they began with the plan to commit fraud, rather than just failing at their business and then lying to cover it up, which is far more likely.