Topic: Judge Orders Bitfinex to Turn Over Tether Loan Documents (Again) - page 2. (Read 398 times)

Although the market may indeed react heavily, for many the fact Tether is cheating is known thing, not "a shock".
I actually hope this Tether "soap opera" comes to an end and only the properly backed stable coins remain on the market.

Personally i find it really difficult to believe that so much fiat money ( roughly 10 billion usd between jan to September) could have flown into crypto markets at a time of so much financial turmoil/ consolidation all over the world. The most likely scenario to me is that there is a very high demand from people for tether/stable coins but most of this demand is being met by using crypto currencies as collateral rather than actual USD.
I.e People selling bitcoins on exchanges for tether and the exchanges then requesting more tether from Bitfinex/ tether corp and tether subsequently printing the same and sending it over (this would then explain the large 250 million batches). Again this new tether would have then be printed using Bitcoins/cryptos as collateral since one could safely assume that even most exchanges combined would not have 10 billion in fiat to send to Tether over 6-7 months.


Completely agree with you, i mean if something does happen to tether then yea any money o bitfinex will most likely be gone, while other exchanges will also be hard hit( Many will just close while the bigger ones might impose haircuts on all user funds they possesses.

And while no one can tell you with any surety whether tether actually has the funds or not( They have already admitted that its not 100% backed by cash but with equivalent, who is to say what this is but i am guessing its most likely backed by Bitcoin or god forbid some other altcoin.)


And while the nature of crypto trading means that there will always be a need for users to move into stable coins from time to time given the ongoing investigations and given how elusive Bitfinex/tether have been in general towards providing any concrete data on it, it just makes sense to use some other stable coin given that there are other choices available (PAX, TUSD, USDC etc). I Mean even if you think that all of the tether stuff is FUD why put your own funds at risk.  

That being said if tether does get taken down i couldn't really say how many other stable coins would survive or be able to maintain their own pegs.

It's one of those cases where you want both sides to lose, heh.

I don't doubt the Attorney General's office are basically grasping in the dark, have no idea what they're actually looking for and probably wouldn't recognise it if they found it.  But at the same time, it's right that they should be suspicious of Bitfinex, who have been excessively furtive and rather shady in their dealings around the supposed "fully backed" nature of Tether.  It would be genuinely astounding to me if it turns out they really do have $14 billion USD in reserve, but something tells me they're never going to attempt to prove that's the case.  Last I heard of this ongoing farce, they'd amended their T&Cs to state that other assets may be used to back Tether, but didn't go into much further detail about what those assets might be.

I'll take this opportunity to give the usual reminder that people should only have funds on exchanges that they can afford to lose, particularly in the case of Bitfinex at the moment.  Also, if anyone currently has large sums stored in USDT, consider hedging with some other stablecoins (although, personally, they all sound as scammy and dangerous as each other to me, so I don't actually recommend holding any of them).

If Tether is accused of cheating again, this could be a shock, the market could be hit hard by bad news like this one. Tether they have printed too much USDT at a rate of 1 billion dollars a month in the last 5 months. Assuming they used USDT to buy altcoins and bitcoins at a good price and now they want to sell them to use the money to prove their liquidity, it is a disaster.

Bitfinex and Tether must turn over documents detailing their financial relationship and history to the New York Attorney General’s office (NYAG), a New York Supreme Court justice ruled again on Thursday.

Judge Joel M. Cohen, the judge who has been overseeing the NYAG’s inquiry into Bitfinex and Tether, made the ruling after a charged, hour-long hearing on Thursday. Counsel for the crypto companies argued the document production order is too broad while the NYAG’s office argued the order is reasonable, saying Bitfinex has not submitted anywhere near the sufficient documents despite the amount of time that has elapsed since the case began.

Cohen didn’t set a firm deadline for when Bitfinex and Tether would have to produce these documents, leaving that decision to a special referee, but said a deadline would need to be set. As part of his order, he extended an injunction that would have ended in the next few weeks barring Tether from loaning funds to Bitfinex by 90 days. 


https://www.coindesk.com/bitfinex-tether-nyag-hearing