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They can be sued if they claim that they hold more assets than they are issuing. If you tell everyone that it's a dollar per coin, and suddenly there are 5 bill
by alexk307 4y ago
They can be sued if they claim that they hold more assets than they are issuing. If you tell everyone that it's a dollar per coin, and suddenly there are 5 billion coins, you better have $5 billion to your name somehow.
Not sure if there have been similar lawsuits in the crypto world yet.
- frostwarrior 4y agoFor that to be true, that coin needs to abide to the same laws as real currency. If I say that "1 dollar = 1 virtual thingy" and suddenly there are a lot of virtual thingies and their price fall, then what's the crime aside me personally being a lying f*ck that can´t be trusted anymore? I don't see how "legitDollarCoins" is legally more legit than, say, lootboxes.
- encoderer 4y agoYou don’t need a crime to sue somebody. You need a tort.
- dragontamer 4y agoTurns out that lying to people on a large scale is a crime named 'Fraud'.
- bb88 4y agoIt's a security and is regulated as such. So SEC, torts, etc. In this case if you're marketing $TOKEN as a stablecoin and there's no resources to back it up then it's literally a $PONZICOIN. $USDC might be okay, I know they've made moves to back their coin in dollars and treasuries.
- mschuetz 4y agoIt's simply fraud. There are laws against fraud.
- eqmvii 4y agoTether isn’t a real company operating in a country that applies laws to it. That’s the whole point.
- f0xJtpvHYTVQ88B 4y agoTether is a company and laws have been applied to it. 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-... https://www.bloomberg.com/news/articles/2021-07-26/tether-executives-said-to-face-criminal-probe-into-bank-fraud https://www.bloomberg.com/news/articles/2021-07-26/tether-ex...