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The NYAG release fails to mention - why did they had not have access to banking? Cause the $850m they had in a bank account was frozen. https://bitcoinmagazi

by smoovb 4y ago

The NYAG release fails to mention - why did they had not have access to banking? Cause the $850m they had in a bank account was frozen. https://bitcoinmagazine.com/culture/bitfinex-files-subpoena-to-recover-850m-in-frozen-bank-accounts https://bitcoinmagazine.com/culture/bitfinex-files-subpoena-... Then, On May 10, 2019 "To alleviate the cash shortfall, BitFinex announced it would conduct a private offering for $1 billion for it's token Unus Sed Leo." SBF, a crypto insider, has said these issues are the growing pains of a company not allowed to use the US banking system and suck with second and third tier banking solutions.

ceejayoz 4y ago
> In its recent subpoena application, Bitfinex claims that these losses were the result of theft or criminal mismanagement by Crypto Capital. Without signing a formal agreement, Bitfinex entrusted $880 million with Crypto Capital and since then has been unable to access it. In a bid to avoid disclosing these difficulties to its users, Bitfinex initiated the scheme to “borrow” money from Tether. You think this makes them look less sleazy? Who gives someone nearly a billion dollars without a contract?
- smoovb 4y ago
  The early days of crypto were an under-regulated wild west but most projects are now moving from sleazy to more formal regulation. There is evidence that Tether is making moves to improve.
  - ceejayoz 4y ago
    > There is evidence that Tether is making moves to improve. Such as? There is concrete evidence that Tether has repeatedly defrauded the field.
    - smoovb 4y ago
      The fact the NYAG settled for $18.5M is as concrete as it gets. If there were more wrong doing than a frozen bank account, why would NYAG settle with no wrongdoing admitted?
      - ceejayoz 4y ago
        A whole bunch of very guilty companies have settled “with no wrongdoing admitted”. That’s entirely standard. If that’s your only evidence of turning things around, ooof. https://www.wsj.com/articles/SB10001424127887324767004578491410503567462 https://www.wsj.com/articles/SB10001424127887324767004578491...
        smoovb 4y ago
        Clients have successfully redeemed 10% of outstanding USDT, which happens to be the fractional reserve requirement for major US banks. Evidence they are at least as liquid as any US bank is required to be. https://www.investopedia.com/terms/f/fractionalreservebanking.asp https://www.investopedia.com/terms/f/fractionalreservebankin...
        ceejayoz 4y ago
        Bernie Madoff was able to fulfill withdrawals for years, until the house of cards collapsed. Being able to redeem 10% isn't something to brag about. Bank depositors have the FDIC as a backstop, too.
        smoovb 4y ago
        Tether is nothing like Bernie Madoff (not an investment or path to riches) and everything like a state issuing currency. As long as the core constituents have a stake in it (the elite exchanges), then it will go on with out issue. The risk to Tether is not default, a but an attack.

by smoovb 4y ago

ceejayoz 4y ago

> In its recent subpoena application, Bitfinex claims that these losses were the result of theft or criminal mismanagement by Crypto Capital. Without signing a formal agreement, Bitfinex entrusted $880 million with Crypto Capital and since then has been unable to access it. In a bid to avoid disclosing these difficulties to its users, Bitfinex initiated the scheme to “borrow” money from Tether. You think this makes them look less sleazy? Who gives someone nearly a billion dollars without a contract?

smoovb 4y ago
The early days of crypto were an under-regulated wild west but most projects are now moving from sleazy to more formal regulation. There is evidence that Tether is making moves to improve.
- ceejayoz 4y ago
  > There is evidence that Tether is making moves to improve. Such as? There is concrete evidence that Tether has repeatedly defrauded the field.
  - smoovb 4y ago
    The fact the NYAG settled for $18.5M is as concrete as it gets. If there were more wrong doing than a frozen bank account, why would NYAG settle with no wrongdoing admitted?
    - ceejayoz 4y ago
      A whole bunch of very guilty companies have settled “with no wrongdoing admitted”. That’s entirely standard. If that’s your only evidence of turning things around, ooof. https://www.wsj.com/articles/SB10001424127887324767004578491410503567462 https://www.wsj.com/articles/SB10001424127887324767004578491...
      - smoovb 4y ago
        Clients have successfully redeemed 10% of outstanding USDT, which happens to be the fractional reserve requirement for major US banks. Evidence they are at least as liquid as any US bank is required to be. https://www.investopedia.com/terms/f/fractionalreservebanking.asp https://www.investopedia.com/terms/f/fractionalreservebankin...
        ceejayoz 4y ago
        Bernie Madoff was able to fulfill withdrawals for years, until the house of cards collapsed. Being able to redeem 10% isn't something to brag about. Bank depositors have the FDIC as a backstop, too.
        smoovb 4y ago
        Tether is nothing like Bernie Madoff (not an investment or path to riches) and everything like a state issuing currency. As long as the core constituents have a stake in it (the elite exchanges), then it will go on with out issue. The risk to Tether is not default, a but an attack.