4 ms·

GeminiUSD is approved by US regulators: > Gemini and the GUSD benefit from the direct supervision and regulatory oversight of the New York State Department of

by 323 4y ago

GeminiUSD is approved by US regulators: > Gemini and the GUSD benefit from the direct supervision and regulatory oversight of the New York State Department of Financial Services (NYDFS). Gemini began issuing Gemini Dollars on September 9, 2018, making the GUSD among the first regulated stablecoins in the world. https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-dollar https://www.gemini.com/cryptopedia/gusd-stablecoin-gemini-do... > Each GUSD corresponds to a U.S. dollar held by Gemini in accounts at U.S. FDIC-insured bank accounts and money market funds holding short-term U.S. treasury bonds and maintained at a custodian. The cash portion of these GUSD reserves may be eligible for FDIC “pass through” insurance for Gemini customers, in the event of the failure of a bank holding the U.S. dollar deposit portion of the GUSD reserves. https://www.gemini.com/dollar https://www.gemini.com/dollar

ceejayoz 4y ago
Gemini lies. https://www.gemini.com/dollar https://www.gemini.com/dollar The page: "Review the Gemini dollar reserve-funds independent accountant audit reports..." The "audit": "Our examination was conducted in accordance with ATTESTATION standards established by the American Institute of Certified Public Accountants." Attestations are not audits; they are different in very important ways. "I have $1,000 in the bank" is an attestation. "I have $1,000 in the bank, but I owe $2,000 in mortgage payments tomorrow" is an audit. Tether got caught pulling this trick; they'd get Bitfinex to transfer money into their accounts the day before an attestation, and move it out the day after. 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-... > However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account.
- 323 4y ago
  As stated in the document, the audit firm is required by law "to obtain evidence about Management Assertion". Is not just a rubber stamp. So far you have not provided any evidence about Gemini lying, just whataboutism about Tether.
  - ceejayoz 4y ago
    The evidence for an attestation is getting a look at bank balances. An audit would determine where the money came from, who has claims on it, etc. > So far you have not provided any evidence about Gemini lying, just whataboutism about Tether. Calling an attestation an audit is a lie. Tether provides a concrete example of why attestations are not sufficient; an audit would've revealed the shenanigans with transfers in and out, and that's likely why they never completed one despite promising regular audits on their home page for years.
    - 323 4y ago
      As stated in the report, the "Management Assertion" was examined and "found to be fairly stated in all material respects". The "Management Assertion" is described in Section II, containing among other things "segregated specifically for the US dollars that correspond to Gemini dollars". So to my reading the BPM accounting firm, which is in top 5 Bay Area accounting firms, agrees that the Gemini dollars are backed by segregated dollars. You should well known what segregated means.
      - ceejayoz 4y ago
        "We have $1B in the bank account at 9am on 6/13/2022" is a management assertion. It can be correct. It can be entirely true, and verifiable! An accounting firm will happily attest to its truthfulness. An audit might reveal that the $1B is someone else's money.
        323 4y ago
        Which is why the word SEGREGATED is important. Segregated means that the company can not touch that money except to return it to clients. That's law. So it can't be "someone else's money" by law. And the bank holding this segregated money is also complied by law. https://financialit.net/blog/segregated-accounts/why-fintech-companies-are-requested-have-segregated-bank-accounts https://financialit.net/blog/segregated-accounts/why-fintech...

by 323 4y ago

ceejayoz 4y ago

Gemini lies. https://www.gemini.com/dollar https://www.gemini.com/dollar The page: "Review the Gemini dollar reserve-funds independent accountant audit reports..." The "audit": "Our examination was conducted in accordance with ATTESTATION standards established by the American Institute of Certified Public Accountants." Attestations are not audits; they are different in very important ways. "I have $1,000 in the bank" is an attestation. "I have $1,000 in the bank, but I owe $2,000 in mortgage payments tomorrow" is an audit. Tether got caught pulling this trick; they'd get Bitfinex to transfer money into their accounts the day before an attestation, and move it out the day after. 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-... > However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account.

323 4y ago
As stated in the document, the audit firm is required by law "to obtain evidence about Management Assertion". Is not just a rubber stamp. So far you have not provided any evidence about Gemini lying, just whataboutism about Tether.
- ceejayoz 4y ago
  The evidence for an attestation is getting a look at bank balances. An audit would determine where the money came from, who has claims on it, etc. > So far you have not provided any evidence about Gemini lying, just whataboutism about Tether. Calling an attestation an audit is a lie. Tether provides a concrete example of why attestations are not sufficient; an audit would've revealed the shenanigans with transfers in and out, and that's likely why they never completed one despite promising regular audits on their home page for years.
  - 323 4y ago
    As stated in the report, the "Management Assertion" was examined and "found to be fairly stated in all material respects". The "Management Assertion" is described in Section II, containing among other things "segregated specifically for the US dollars that correspond to Gemini dollars". So to my reading the BPM accounting firm, which is in top 5 Bay Area accounting firms, agrees that the Gemini dollars are backed by segregated dollars. You should well known what segregated means.
    - ceejayoz 4y ago
      "We have $1B in the bank account at 9am on 6/13/2022" is a management assertion. It can be correct. It can be entirely true, and verifiable! An accounting firm will happily attest to its truthfulness. An audit might reveal that the $1B is someone else's money.
      - 323 4y ago
        Which is why the word SEGREGATED is important. Segregated means that the company can not touch that money except to return it to clients. That's law. So it can't be "someone else's money" by law. And the bank holding this segregated money is also complied by law. https://financialit.net/blog/segregated-accounts/why-fintech-companies-are-requested-have-segregated-bank-accounts https://financialit.net/blog/segregated-accounts/why-fintech...