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Do they have a choice? The claims they've made (fully backed by cash equivalents, separated reserves safe even in bankruptcy, always available for 1:1 redemptio

Do they have a choice? The claims they've made (fully backed by cash equivalents, separated reserves safe even in bankruptcy, always available for 1:1 redemption) [1] will be considered fraud if they don't redeem all $16Bn. 1: https://www.binance.com/en/blog/ecosystem/understanding-busd-and-binancepeg-busd-5526464425033159282 https://www.binance.com/en/blog/ecosystem/understanding-busd...

elbigbad 4y ago
My argument if I were Binance would be that no reasonable person would have seen these statements and believed them or took them at face value so they don’t have to abide by them.
- notahacker 4y ago
  I'm not sure "your honour, it's so obvious that we're scammers that we can tell as many lies as we like and do whatever we like with people's money" has a particularly high success rate as a legal defence...
  - michaelt 4y ago
    Presumably elbigbad is thinking of cases like Tucker Carlson [1], Elon Musk [2], Sidney Powell [3], and Elon Musk again [4], all of whom have successfully defended themselves in court by claiming no reasonable person would have believed what they said. I don't know whether such a defence would work for cryptocurrency scammers - it's certainly not the lowest risk option IMHO. [1] https://www.businessinsider.com/fox-news-karen-mcdougal-case-tucker-carlson-2020-9?r=US&IR=T https://www.businessinsider.com/fox-news-karen-mcdougal-case... [2] https://www.reuters.com/article/us-musk-lawsuit-idUSKBN1YA13U https://www.reuters.com/article/us-musk-lawsuit-idUSKBN1YA13... [3] https://www.theguardian.com/us-news/2021/mar/23/sidney-powell-trump-election-fraud-claims https://www.theguardian.com/us-news/2021/mar/23/sidney-powel... [4] https://www.theguardian.com/technology/2023/feb/03/elon-musk-tesla-investors-lawsuit-twitter https://www.theguardian.com/technology/2023/feb/03/elon-musk...
    - notahacker 4y ago
      Big difference between libel claims being ruled non-serious and "it's not crime if the people we stole from should have expected our statements to be fraudulent" though. (And it's not exactly a low risk defence for libel and defamation either. It worked for Alex Jones until it didn't)

elbigbad 4y ago

My argument if I were Binance would be that no reasonable person would have seen these statements and believed them or took them at face value so they don’t have to abide by them.

notahacker 4y ago
I'm not sure "your honour, it's so obvious that we're scammers that we can tell as many lies as we like and do whatever we like with people's money" has a particularly high success rate as a legal defence...
- michaelt 4y ago
  Presumably elbigbad is thinking of cases like Tucker Carlson [1], Elon Musk [2], Sidney Powell [3], and Elon Musk again [4], all of whom have successfully defended themselves in court by claiming no reasonable person would have believed what they said. I don't know whether such a defence would work for cryptocurrency scammers - it's certainly not the lowest risk option IMHO. [1] https://www.businessinsider.com/fox-news-karen-mcdougal-case-tucker-carlson-2020-9?r=US&IR=T https://www.businessinsider.com/fox-news-karen-mcdougal-case... [2] https://www.reuters.com/article/us-musk-lawsuit-idUSKBN1YA13U https://www.reuters.com/article/us-musk-lawsuit-idUSKBN1YA13... [3] https://www.theguardian.com/us-news/2021/mar/23/sidney-powell-trump-election-fraud-claims https://www.theguardian.com/us-news/2021/mar/23/sidney-powel... [4] https://www.theguardian.com/technology/2023/feb/03/elon-musk-tesla-investors-lawsuit-twitter https://www.theguardian.com/technology/2023/feb/03/elon-musk...
  - notahacker 4y ago
    Big difference between libel claims being ruled non-serious and "it's not crime if the people we stole from should have expected our statements to be fraudulent" though. (And it's not exactly a low risk defence for libel and defamation either. It worked for Alex Jones until it didn't)