Step 2) Sue the company for being insolvent.
Step 3) Profit?
Topic: Bitfinex and Tether sued for alleged fraud! (Read 210 times)
Step 1) Confiscate a company's funds.
Step 2) Sue the company for being insolvent.
Step 3) Profit?
Step 2) Sue the company for being insolvent.
Step 3) Profit?
No surprises here. Bitfinex’ed has been warning about Tether for years. Tether is a good idea but it is just too tempting to use it as an infinite line of credit. Lack of bank co-operation also made it risky.
Shasan, I think this fits well int he Press board if you follow the right reporting format or even other boards like Trading discussion because I don't think it's a scam accusation.
I am not sure, should I move it to reputation board?
They have no bitcointalk profile link so, scam accusation format cant work. Waiting for the suggestion. If it belongs to reputation then I will move.
They have no bitcointalk profile link so, scam accusation format cant work. Waiting for the suggestion. If it belongs to reputation then I will move.
It doesn't need to have a profile link, just explain who scammed whom and how and for how much, etc.
Otherwise it's more of a Bitcoin Discussion (or Altcoin Discussion) topic.
Please format the accusation with proper facts or move it where news reports belong.
They have no bitcointalk profile link so, scam accusation format cant work. Waiting for the suggestion. If it belongs to reputation then I will move.
Please format the accusation with proper facts or move it where news reports belong.
here is Bitfinexs response.
This doesn’t look very good for Bitfinex or tether. The value of the collateral that was securing the line of credit was valued at ~$120mm as of late yesterday after the news broke. This is on a $700mm draw on the line of credit.
There are appropriately $2.7 billion tethers outstanding. This means the amount of dollars backing tethers is approximately $0.74 per tether, plus another $0.044 per tether, or a total of about $0.80 per tether (rounding).
It isn’t unreasonable to suggest tether makes 3% per year on their bank deposits and charges 3% to withdraw for amounts over $10mm.
This doesn’t look very good for Bitfinex or tether. The value of the collateral that was securing the line of credit was valued at ~$120mm as of late yesterday after the news broke. This is on a $700mm draw on the line of credit.
There are appropriately $2.7 billion tethers outstanding. This means the amount of dollars backing tethers is approximately $0.74 per tether, plus another $0.044 per tether, or a total of about $0.80 per tether (rounding).
It isn’t unreasonable to suggest tether makes 3% per year on their bank deposits and charges 3% to withdraw for amounts over $10mm.
I suggest that people read the filing and ignore all the poorly written articles: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod
To know more click on the image below:
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