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For those doubting that Tether is fully backed, note that Howard Lutnick, CEO of Cantor Fitzgeral, one of the largest investment banks and a public company, has
by gws 2y ago
For those doubting that Tether is fully backed, note that Howard Lutnick, CEO of Cantor Fitzgeral, one of the largest investment banks and a public company, has stated that Cantor Fitzgeral manages Tether’s money and indeed the money is all there and invested in US treasury bonds
- JumpCrisscross 2y ago> Howard Lutnick, CEO of Cantor Fitzgeral, one of the largest investment bank and a public company, has stated that Cantor Fitzgeral manages Tether’s money and indeed the money is all there and invested in US treasury bonds Source? I'm seeing Fitzgerald say "Cantor Fitzgerald manages 'many many' of" Tether's assets (not all) and that he can vouch for their balance sheet [1]. But not that Cantor manages all of its assets nor that it's all in Treasuries. [1] https://www.bloomberg.com/news/articles/2024-01-16/tether-s-custodian-says-the-crypto-giant-has-the-money-it-claims https://www.bloomberg.com/news/articles/2024-01-16/tether-s-...
- pfisherman 2y agoWhat are the incentives at work here? What is their risk exposure to a collapse of tether? What would be the reputation al risk to their firm if tether was a scam? I personally would take this with a grain of salt as they have a direct financial interest in Tether looking solid and prestigious and continuing its present operations. I am old enough to remember when investment banks touting their mortgage backed securities business before the collapse in 2008.
- gws 2y agoThe incentives at work here are that if a CEO of a public company makes false statements of this kind goes to jail. This is like the CEO of the bank that held Bernie Madoff's money going on record before Madoff's fall saying he holds Bernie's money and it's all there. If Tether is unbacked Howard Lutnick is going to jail, so it is irrational to believe Tether is unbacked at this point.
- pfisherman 2y agoSo what exactly did the CEO say? Did he attest to tether’s balance sheet? Did he attest to the dollar amount of tether’s assets managed his institution? What I am getting is that he simply said that he holds some of tether’s assets. Why and how would that make him privy to the entirety of tether’s balance sheet?
- gws 2y agoListen to 8:45 of this video: https://youtu.be/IjR3Hj0aRW4?si=s2D0wjQOIS5uiFKh https://youtu.be/IjR3Hj0aRW4?si=s2D0wjQOIS5uiFKh He says that Tether can redeem any request because his company holds their money. If Tether is unbacked this is security fraud
- seper8 2y ago[flagged]
- lottin 2y agoThat's nonsense. If they want to remove doubts that the money is all there they should get an audit. Refusing to get an audit is an enormous red flag.
- botanical 2y agoThey have $118.4 billion in USD reserves?