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Yes, the NY investigation was all about this: they patched up the loss and quietly changed their terms to being backed by cash or equivalents. And they later d
by RustyRussell 3y ago
Yes, the NY investigation was all about this: they patched up the loss and quietly changed their terms to being backed by cash or equivalents.
And they later detailed the $1bn Tether printed for Celcius in return for collateral (once Celcius collapsed and they claimed it was fully repaid).
Understand: for modern banks this kind of fractional behaviour is considered normal. It's only from the weird Bitcoin perspective that full reserve would be a requirement.
- redcobra762 3y agoSo in other words, an investigation took place, changes were made, and Tether was allowed to continue to operate?
- RustyRussell 3y agoYes. The history of authorities protecting users before failure in the cryptocurrency world is fairly empty, however. TBH I'm not sure if they're allowed to operate in NY though.