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From the cited article, that quote was Bitfinex to one of their banks not processing fiat redemption requests (so people could not withdraw money from Bitfinex)
by FabHK 5y ago
From the cited article, that quote was Bitfinex to one of their banks not processing fiat redemption requests (so people could not withdraw money from Bitfinex). Of course, prolonged bouts of that would've reduced trust in crypto and exchanges, reasonably so.
Not evident what that has to do with the Tether printer?
And btw, do you have any links on the hedge fund connection, and Alameda and Cumberland?
- arcticbull 5y ago> Not evident what that has to do with the Tether printer? Shortly after that exchange, they realized they could just take the money out of the Tether bank account, and use it to satisfy their withdrawal requests. I speculate this is the moment they realized that they did not have to actually back their USDT, and turned on the printer. > Of course, prolonged bouts of that would've reduced trust in crypto and exchanges, reasonably so. I think that is a completely reasonable alternative explanation. > And btw, do you have any links on the hedge fund connection, and Alameda and Cumberland? Check this out. Protos did the legwork to figure out where all the USDT issuances were going. Of $96B in outbound distributions to market makers, $36B went to Alameda and $24B went to Cumberland. That's almost 70% of all distributions ever made to large accounts. [1] https://protos.com/tether-papers-crypto-stablecoin-usdt-investigation-analysis/ https://protos.com/tether-papers-crypto-stablecoin-usdt-inve...