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Note that the current Tether investigation just moved to the SDNY DOJ office that handles the biggest financial cases. This time they're looking into possible

Note that the current Tether investigation just moved to the SDNY DOJ office that handles the biggest financial cases. This time they're looking into possible bank fraud committed by Tether [1], while their previous case was settled without admitting wrongdoing [2], but their investigation showed Tether wasn't fully backed for activities in NY, while their records of their backed assets have been sealed and CoinDesk / others were denied their FOIA request to access them due to "adverse business impact" - so it seems like there's a whole hell of lot of smoke around their likely fire... From [2]: "Meanwhile, Tether has resolved government accusations that it overstated its holdings. From June to September 2017, Tether never had more than $61.5 million in funds while about 442 million coins were in circulation, the Commodity Futures Trading Commission said last year." [1] https://www.bloomberg.com/news/articles/2022-10-31/tether-bank-fraud-probe-gets-fresh-look-by-justice-department https://www.bloomberg.com/news/articles/2022-10-31/tether-ba... [2] 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-...

dustingetz 4y ago
so tether mkt cap / 10 = the amount of fake leverage in btc price? is it true?
- baobabKoodaa 4y ago
  No. The ratio you refer to was specifically from a 2-month period in 2017. Furthermore, not all of that can be considered to be levering btc price up.
1vuio0pswjnm7 4y ago
According to the "public disclosure" they made back in March 2021 under the agreement with the NYAG, a whopping total of 3.87% of tether is backed by cash. Over 65% is backed by IOUs, i.e., unsecured promises to pay in 270 days or less, or, if one prefers certain terminology, commercial paper. https://web.archive.org/web/20210513120449/https://tether.to/wp-content/uploads/2021/05/march-31-2021-reserves-breakdown-tether.pdf https://web.archive.org/web/20210513120449/https://tether.to... Of course, Tether does not tell us who are the "I's" in the IOUs. They could all be affiliated entities (like Alameda was to FTX) or other crypto startups. Does it make any difference who are the entities, or individuals, that have promised to pay.

dustingetz 4y ago

so tether mkt cap / 10 = the amount of fake leverage in btc price? is it true?

baobabKoodaa 4y ago
No. The ratio you refer to was specifically from a 2-month period in 2017. Furthermore, not all of that can be considered to be levering btc price up.

1vuio0pswjnm7 4y ago

According to the "public disclosure" they made back in March 2021 under the agreement with the NYAG, a whopping total of 3.87% of tether is backed by cash. Over 65% is backed by IOUs, i.e., unsecured promises to pay in 270 days or less, or, if one prefers certain terminology, commercial paper. https://web.archive.org/web/20210513120449/https://tether.to/wp-content/uploads/2021/05/march-31-2021-reserves-breakdown-tether.pdf https://web.archive.org/web/20210513120449/https://tether.to... Of course, Tether does not tell us who are the "I's" in the IOUs. They could all be affiliated entities (like Alameda was to FTX) or other crypto startups. Does it make any difference who are the entities, or individuals, that have promised to pay.