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My understanding is that Tether have repeatedly refused to allow an audit of their holdings, therefore everyone assumes everything they say is a flat-out lie.
by flooow 4y ago
My understanding is that Tether have repeatedly refused to allow an audit of their holdings, therefore everyone assumes everything they say is a flat-out lie.
- FireBeyond 4y agoThey did once say they had an audit done, but would be unable to release it... "because it is in Mandarin." Like what the actual fuck.
- jrochkind1 4y agoToo bad so few on the planet read Mandarin who might be able to understand it, right? Such a rare language...
- FireBeyond 4y agoSome of them may even be able to speak both English and Mandarin! Like some of their employees for but one example…
- hef19898 4y agoAnd now imagine if those people would do a, hold on, translation of the audit report...
- FireBeyond 4y agoLet's not get too creative now! Office Space: What if - and believe me this is a hypothetical - but what if you were able to translate the audit. Would that do anything for you?
- whimsicalism 4y agoSource?
- FireBeyond 4y ago> We are aware of online discussions about Tether’s lack of publicly-available audits. Periodic audits of our bank balances have been performed by the Taiwan-based auditing firm TOPSUN CPAs & Co. The results of those audits were for the benefit of shareholders and were not in a form suitable for public consumption (to begin with, they were in Mandarin). Source: https://cointelegraph.com/news/tether-really-isnt-a-scam-company-promises https://cointelegraph.com/news/tether-really-isnt-a-scam-com... And straight from the horse's mouth: https://tether.to/en/tether-update/ https://tether.to/en/tether-update/ (search 'Auditors')
- whimsicalism 4y agothanks! for some reason my googlefu wasn't doing the job right.
- btilly 4y agoMy reasoning is different. They have repeatedly been forced to admit in court that they lied in the past. They have also had reserves invested with a fake bank whose CEO stole money from them and is now convicted in bank fraud. They claimed to be one of the largest holders of specific asset classes, but nobody trading those has any memory of trading them. And so on and so forth. The refusing to allow a real audit is just icing on a cake consisting of a mountain of evidence of fraud. As Matt Levine memorably said, they are "practically quilted out of red flags."
- bhouston 4y agoIt seems that Tether will survive - why, because they have so far. Not sure why, but I figure they bluffed their way to solvency?
- throw_m239339 4y agoYeah, I found Tether resilience incredible indeed, but Madoff and his Ponzi scheme went on for decades too even when JP Morgan figured out it was a scam and still did business with him while informing neither the SEC nor the US government. https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-and-fbi-assistant-director-charge-announce-filing-criminal https://www.justice.gov/usao-sdny/pr/manhattan-us-attorney-a... So they must be "backed" by something, we just don't know whom or how, that allows them to keep their scheme running.
- Darkphibre 4y agoIs there a way to "short" Teather? Seems like that'd be the money play.
- wmf 4y agoIt's possible but it's extremely dangerous. The exchanges that you'd use to short Tether are the ones preventing Tether from collapsing. These exchanges could invent an excuse to liquidate you before they allow Tether to collapse so even if you were right you'd still lose all your money.