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They don't claim it's backed 1:1 by USD. They claim it's backed by more or less liquid alternatives: https://tether.to/en/transparency/#reports https://tether.t
by potatototoo99 4y ago
They don't claim it's backed 1:1 by USD. They claim it's backed by more or less liquid alternatives: https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports
- richbell 4y ago> They don't claim it's backed 1:1 by USD. They claim it's backed by more or less liquid alternatives They used to, for several years, until they were pressured to prove it and could not (27:05). https://youtu.be/-whuXHSL1Pg https://youtu.be/-whuXHSL1Pg They were also investigated and found guilty by the New York Attorney General, and were subsequently banned from activity in New York and fined 18.5M. > Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. 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-...
- rcxdude 4y agoNow they do (previously they claimed 1:1 with actual dollars in a bank account, but failed to demonstrate that). But that 80% "Commercial paper" is suspicious as hell, considering it would make up more than half the total market for said paper (so 'liquid' is already questionable), and no-one else in the market has heard of them.
- wmf 4y agoThey're now claiming no commercial paper. I'm not sure if that's more or less suspicious.