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HN has been talking about how Tether is a scam and how it will blow up AnyMomentNow(TM) for two years. Meanwhile, there was no talk on HN about Luna or FTX bei

by 323 4y ago

HN has been talking about how Tether is a scam and how it will blow up AnyMomentNow(TM) for two years. Meanwhile, there was no talk on HN about Luna or FTX being a scam before they imploded. In finance, when everybody "knows" something, it's 99% likely to be false. Because there is a lot of money to be made knowing actual facts in finance.

arcticbull 4y ago
Two years is nothing. It took the government 20 years to end the Madoff scam and for many of those years Markopolos was screaming about it at the top of his lungs. It wasn't until his family turned him in that the government acted in earnest - and only because he was about to close up shop and give whatever was left to his family a few days later. These things go on for a long time, often in plain sight, so if that's what is making you feel better about it, stop. On the other hand the Tether folks signed off on the NYAG settlement where they admitted among other things that basically their entire bankroll was in Hoegner's personal Bank of Montreal account for a while, and that for many years the numbers didn't add up in the slightest. Here, give 'er a skim. [1] And when you're done with that there's always the CTFC settlement. [2] To quote the CFTC settlement: > In fact Tether reserves were not “fully-backed” the majority of the time. [2] If this is a witch hunt we found ourselves a coven. > Meanwhile, there was no talk on HN about Luna or FTX being a scam before they imploded. Maybe not on HN but among the crypto skeptics, they called it outright far in advance. Everyone here was too busy 'making money' to listen. > In finance, when everybody "knows" something, it's 99% likely to be false. Because there is a lot of money to be made knowing actual facts in finance. I mean basically all the things that were alleged for years were admitted in [1] and [2]. You're confused, crypto isn't finance. Crypto is a mob casino. There is no money to be made in a mob casino by knowing 'actual facts.' Not any more than there was at Ultimate Bet by knowing that people could see your cards while Hoegner was director of compliance at their parent entity. Unless you're the one looking at the cards that knowledge is purely entertainment value. [1] https://ag.ny.gov/sites/default/files/2021.02.17_-_settlement_agreement_-_execution_version.b-t_signed-c2_oag_signed.pdf https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen... [2] https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21
- 323 4y ago
  So why doesn't the NYAG charge them with the most obvious scam in history according to HN? If it's so clear from outside that Tether is not backed by actual dollars, how come the NYAG which has subpoena power and so one doesn't latch on such an easy and infamous case?
  - arcticbull 4y ago
    I'll give you a few minutes to read [1] and [2] before I reply earnestly. I know it takes more than 10 minutes to read them because, and this is true, I have read them. The answer to your questions is there. They did. Why did they stop at a fine? I don't know. Maybe there were jurisdictional issues, maybe the Feds were/are looking at it. Heck maybe they thought it would be better if the thing fell in on itself so they weren't viewed as the entity that took down crypto. I dont work at DoJ so I can't tell you. Doesn't change anything though. On the other hand I've given you plenty of night-time reading where you can find the answers to basically every question you've asked me.
  - dragonwriter 4y ago
    > So why doesn't the NYAG charge them with the most obvious scam in history according to HN? They... did. That was the suit that was settled.
richbell 4y ago
> HN has been talking about how Tether is a scam and how it will blow up AnyMomentNow(TM) for two years Tether managed to come back from the brink of death (user loss of confidence) by co-mingling funds with Bitfinex and getting a third-party to provide an 'attestation' based on money they didn't actually have. This was only discovered years after the fact, and were it not for this deception they would have collapsed ages ago, much like FTX. https://youtu.be/-whuXHSL1Pg https://youtu.be/-whuXHSL1Pg

by 323 4y ago

arcticbull 4y ago

Two years is nothing. It took the government 20 years to end the Madoff scam and for many of those years Markopolos was screaming about it at the top of his lungs. It wasn't until his family turned him in that the government acted in earnest - and only because he was about to close up shop and give whatever was left to his family a few days later. These things go on for a long time, often in plain sight, so if that's what is making you feel better about it, stop. On the other hand the Tether folks signed off on the NYAG settlement where they admitted among other things that basically their entire bankroll was in Hoegner's personal Bank of Montreal account for a while, and that for many years the numbers didn't add up in the slightest. Here, give 'er a skim. [1] And when you're done with that there's always the CTFC settlement. [2] To quote the CFTC settlement: > In fact Tether reserves were not “fully-backed” the majority of the time. [2] If this is a witch hunt we found ourselves a coven. > Meanwhile, there was no talk on HN about Luna or FTX being a scam before they imploded. Maybe not on HN but among the crypto skeptics, they called it outright far in advance. Everyone here was too busy 'making money' to listen. > In finance, when everybody "knows" something, it's 99% likely to be false. Because there is a lot of money to be made knowing actual facts in finance. I mean basically all the things that were alleged for years were admitted in [1] and [2]. You're confused, crypto isn't finance. Crypto is a mob casino. There is no money to be made in a mob casino by knowing 'actual facts.' Not any more than there was at Ultimate Bet by knowing that people could see your cards while Hoegner was director of compliance at their parent entity. Unless you're the one looking at the cards that knowledge is purely entertainment value. [1] https://ag.ny.gov/sites/default/files/2021.02.17_-_settlement_agreement_-_execution_version.b-t_signed-c2_oag_signed.pdf https://ag.ny.gov/sites/default/files/2021.02.17_-_settlemen... [2] https://www.cftc.gov/PressRoom/PressReleases/8450-21 https://www.cftc.gov/PressRoom/PressReleases/8450-21

323 4y ago
So why doesn't the NYAG charge them with the most obvious scam in history according to HN? If it's so clear from outside that Tether is not backed by actual dollars, how come the NYAG which has subpoena power and so one doesn't latch on such an easy and infamous case?
- arcticbull 4y ago
  I'll give you a few minutes to read [1] and [2] before I reply earnestly. I know it takes more than 10 minutes to read them because, and this is true, I have read them. The answer to your questions is there. They did. Why did they stop at a fine? I don't know. Maybe there were jurisdictional issues, maybe the Feds were/are looking at it. Heck maybe they thought it would be better if the thing fell in on itself so they weren't viewed as the entity that took down crypto. I dont work at DoJ so I can't tell you. Doesn't change anything though. On the other hand I've given you plenty of night-time reading where you can find the answers to basically every question you've asked me.
- dragonwriter 4y ago
  > So why doesn't the NYAG charge them with the most obvious scam in history according to HN? They... did. That was the suit that was settled.

richbell 4y ago

> HN has been talking about how Tether is a scam and how it will blow up AnyMomentNow(TM) for two years Tether managed to come back from the brink of death (user loss of confidence) by co-mingling funds with Bitfinex and getting a third-party to provide an 'attestation' based on money they didn't actually have. This was only discovered years after the fact, and were it not for this deception they would have collapsed ages ago, much like FTX. https://youtu.be/-whuXHSL1Pg https://youtu.be/-whuXHSL1Pg