What'll happen when USDT collapses? - page 3.

pera

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Quote from: TheQuin on November 21, 2017, 12:01:14 PM

I've got funds in Bitfinex and I'm watching closely if anything makes me nervous I'll get out as quick as I can, but right now it looks OK. Anything may have happened since the audit in October that hasn't been made public yet. However all the noise from a few anonymous bloggers and tweeters I'll ignore for now.

By any chance, are you experiencing any issues like these today?:

https://www.reddit.com/r/bitfinex/comments/7edo1i/23500_usdt_frozen_no_withdraw_emails_sent_this_is/
https://www.reddit.com/r/bitfinex/comments/7egwaa/is_the_support_team_of_bitfinex_on_holiday/
https://www.reddit.com/r/bitfinex/comments/7ehap7/it_has_been_over_24_hours_since_i_transferred_all/

colombuszka

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Quote from: TheQuin on November 21, 2017, 12:01:14 PM

Quote from: Torque on November 21, 2017, 11:47:15 AM

You may be right, but we don't know if this accountancy firm is on the level.

I've done as much research as I can and Friedman LLP seems to be on the level. Established in 1924 with many partners who all stand to be struck off and never work again if they even had the wool pulled over their eyes let alone faked anything. It's just too implausible to happen.

I've got funds in Bitfinex and I'm watching closely if anything makes me nervous I'll get out as quick as I can, but right now it looks OK. Anything may have happened since the audit in October that hasn't been made public yet. However all the noise from a few anonymous bloggers and tweeters I'll ignore for now.

Quote from: Torque on November 21, 2017, 11:47:15 AM

It reminds me of Janet Yellen's garbage responses:
Q. "Why won't you let the Fed be audited?"
A. "The Federal Reserve is one of the most trusted and transparent...."

The Federal Reserve, on the other hand, I wouldn't trust an inch.

Quote from: Ludwig Von on November 21, 2017, 11:51:30 AM

Can you provide a link to where to find a report ?

I read it when it came out back in October, can't remember the link but I'm sure if you search for you'll find it.

Edit. It turns out I saved a copy https://drive.google.com/file/d/128lgqWUqvkITyPrCfupCJgI5Vz4z0-rq/view

I would be able to reproduce that pdf with basic photoshop and document edit skills. Worth nothing without a stamp or a signature.

Ludwig Von

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Quote from: Paashaas on November 21, 2017, 02:26:20 PM

Quote from: TheQuin on November 21, 2017, 11:11:47 AM

That's from March the most recent audit was in October. Do you think an accountancy firm would risk its license by fabricating an audit?

Most likely not but possible.

I saw this on r/CryptoCurrency today that Thether might be hacked by the same person who hacked Stamp in 2015.

Interesting development, awsome detective work.

https://www.reddit.com/r/CryptoCurrency/comments/7eho5y/tether_was_hacked_by_the_same_person_who_hacked/

Just to remind : Friedman states explicitly that the report is not an audit.

Paashaas

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Quote from: TheQuin on November 21, 2017, 11:11:47 AM

That's from March the most recent audit was in October. Do you think an accountancy firm would risk its license by fabricating an audit?

Most likely not but possible.

I saw this on r/CryptoCurrency today that Thether might be hacked by the same person who hacked Stamp in 2015.

Interesting development, awsome detective work.

https://www.reddit.com/r/CryptoCurrency/comments/7eho5y/tether_was_hacked_by_the_same_person_who_hacked/

Lopumbo

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It looks like a hilarious conspiracy because iFinex has even shares of Blockstream Embarrassed

We have to therefore accept that the BTC price was artifically inflated by worthless tokens over a period of 6-8 month.
I cannot understand how USDT can trade to USD bei 1:1? There has to be some counterparty-risk involved in the price. Is everybody so dumb?
After the official meltdown my prediction was/is that at first BTC prices will further increase as long as Ponzifinex somehow manages to distribute withdrawals accordingly.
Maybe "the market" will suck it up over time or it believes in BTCs value regardless of the air - with all that greed that is likely to happen.

nidacoinlove

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USDT is a scam there can be nothing else more. It is only dogging with the real dollar transaction. There is no transparent audit publication of it. Even if it has in past we have examples of audit firms involved with the clients in a high level scams.
It's impact on BTC will be not as much as on the alts if USDT collapsed but still it will be disastrous.
Let's hope all these theories turn to be false, otherwise the repercussions will be unbearable; some exchanges and people will become bankrupt.

pera

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Quote from: theymos on November 21, 2017, 04:57:47 AM

I think that someone or some group has been trying to manipulate the BTC price by spamming these worries on various social media over the last couple of weeks, which has created some natural pushback against the idea. But that doesn't make the idea false.

Bingo! the only thing I wish now is for all this Tether fiasco to end ASAP, even if a small correction is needed.

People should start demanding financial audits to every single exchange they trade on, that should be the norm.

Ludwig Von

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Quote from: fabiorem on November 21, 2017, 12:59:19 PM

Quote from: Ludwig Von on November 21, 2017, 12:19:58 PM

As I have been Goxed, Cloudstripmined straight through the bottom of my pockets, I tell you : if it looks like crook business, smells like and behaves like, just run away as fr as you can.

Do you think a Bitfinex scandal would affect prices? If so, how much?

Gosh, difficult and I do not consider myself knowledgable enough. It will affect prices, of course. But I think, contrary to Gox, will be assimilated very fast. I tend to hold on to the idea that
it might be a necessary cleaning of the system.

gentlemand

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Quote from: julian071 on November 21, 2017, 01:13:14 PM

I don't get why exchanges like poloniex would suffer if USDT would disappear.

Because tens to hundreds of thousands of people are using it on exchanges to park their value. If it disappears then so does their wealth and it could happen with nauseating speed as well. No one's going to want that shit if it is truly problematic and it's not as if there's someone else who's going to step in and magic up hundreds of millions of real dollars.

julian071

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I never understood the importance of USDT for trading. I thought that BTC was the gateway drug to all the alts, so I don't get why exchanges like poloniex would suffer if USDT would disappear. Plus there is always Dash and LTC if you don''t like Bitcoin's high fees.

fabiorem

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Quote from: Ludwig Von on November 21, 2017, 12:19:58 PM

As I have been Goxed, Cloudstripmined straight through the bottom of my pockets, I tell you : if it looks like crook business, smells like and behaves like, just run away as fr as you can.

Do you think a Bitfinex scandal would affect prices? If so, how much?

Ludwig Von

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Quote from: gentlemand on November 21, 2017, 12:04:44 PM

Quote from: Ludwig Von on November 21, 2017, 11:51:30 AM

Can you provide a link to where to find a report ?

https://ftalphaville.ft.com/2017/10/02/2194319/tethers-transparency-update-is-out/

There's a dead link here but I do recall seeing a PDF somewhere a couple of days ago. However it doesn't appear to be a full on flat out audit, more of a skim, but there's no way Friedman would put their name to some absolute dogshit.

As noted in the article - "…these consulting services do not constitute an audit or attestation engagement, which would include a significantly expanded scope of procedures and take substantially more time to complete."

I had read that report already. And as Friedman says it is not a valid (measured to the standards applied for financial institutions). So only smokescreen. (weel paid for).

As I have been Goxed, Cloudstripmined straight through the bottom of my pockets, I tell you : if it looks like crook business, smells like and behaves like, just run away as fr as you can.

gentlemand

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Quote from: Ludwig Von on November 21, 2017, 11:51:30 AM

Can you provide a link to where to find a report ?

https://ftalphaville.ft.com/2017/10/02/2194319/tethers-transparency-update-is-out/

There's a dead link here but I do recall seeing a PDF somewhere a couple of days ago. However it doesn't appear to be a full on flat out audit, more of a skim, but there's no way Friedman would put their name to some absolute dogshit.

As noted in the article - "…these consulting services do not constitute an audit or attestation engagement, which would include a significantly expanded scope of procedures and take substantially more time to complete."

TheQuin

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Quote from: Torque on November 21, 2017, 11:47:15 AM

You may be right, but we don't know if this accountancy firm is on the level.

I've done as much research as I can and Friedman LLP seems to be on the level. Established in 1924 with many partners who all stand to be struck off and never work again if they even had the wool pulled over their eyes let alone faked anything. It's just too implausible to happen.

I've got funds in Bitfinex and I'm watching closely if anything makes me nervous I'll get out as quick as I can, but right now it looks OK. Anything may have happened since the audit in October that hasn't been made public yet. However all the noise from a few anonymous bloggers and tweeters I'll ignore for now.

Quote from: Torque on November 21, 2017, 11:47:15 AM

It reminds me of Janet Yellen's garbage responses:
Q. "Why won't you let the Fed be audited?"
A. "The Federal Reserve is one of the most trusted and transparent...."

The Federal Reserve, on the other hand, I wouldn't trust an inch.

Quote from: Ludwig Von on November 21, 2017, 11:51:30 AM

Can you provide a link to where to find a report ?

I read it when it came out back in October, can't remember the link but I'm sure if you search for you'll find it.

Edit. It turns out I saved a copy https://drive.google.com/file/d/128lgqWUqvkITyPrCfupCJgI5Vz4z0-rq/view

Ludwig Von

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Quote from: TheQuin on November 21, 2017, 11:37:07 AM

Quote from: Ludwig Von on November 21, 2017, 11:34:28 AM

I have read that there is no official audit data provided by a competent body.

Then what you read was wrong. I have read the actual audit report from a well-established accountancy firm that most certainly is competent.

Can you provide a link to where to find a report ?

Torque

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Quote from: TheQuin on November 21, 2017, 11:37:07 AM

Quote from: Ludwig Von on November 21, 2017, 11:34:28 AM

I have read that there is no official audit data provided by a competent body.

Then what you read was wrong. I have read the actual audit report from a well-established accountancy firm that most certainly is competent.

You may be right, but we don't know if this accountancy firm is on the level.

To this day it still blows my mind that for years now, trusted people like Andreas Antonopolous makes themselves known and available to the crypto world as a trusted independent auditor (who at one point he was even offering this service for free). And yet none of these exchanges will have him come in and do one.

In my mind, that speaks volumes.

It reminds me of Janet Yellen's garbage responses:
Q. "Why won't you let the Fed be audited?"
A. "The Federal Reserve is one of the most trusted and transparent organizations.. blah blah blah...."

TheQuin

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Quote from: Ludwig Von on November 21, 2017, 11:34:28 AM

I have read that there is no official audit data provided by a competent body.

Then what you read was wrong. I have read the actual audit report from a well-established accountancy firm that most certainly is competent.

abercrombie

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Bitfinexed was on LIVESTREAM last night debating the issue.

Contenders: Bitfinexed, Jimmy Song, Tone Vays (vs) Flibbr, and BTCVIX

TLDR Takeaways:

Tether not being created out of thin air. Tether issued upon deposit of the dollar. Huge investor(s) with wiring issues make deposit arrangement to Bitfinex. After deposits, Bitfinex creates respective tether. Notice, the huge spike in tether happened once the bull market started picking up and hitting mainstream media.
It would be highly unintelligent to create fraudulent tether in a fully public blockchain.
Friedman LLP balance sheet audit matched $400mm in bank account to 400 teather at the time. They make about $1mm in fees each day.
Charts show no direct correlation between tether & price spikes.
If there is possible Fraud, the market would price in $1 USDT at less than $1 USD.
There is no proof that Bitfinex is have withdrawal problems, no complaints anywhere.
Tone Vays has an awesome haircut

"Bitfinexed on why Bitfinex is in trouble - Off Chain Live 2017.11.20"
https://www.youtube.com/watch?v=TerIjELO7IY

Ludwig Von

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Quote from: TheQuin on November 21, 2017, 11:26:37 AM

Quote from: AT101ET on November 21, 2017, 11:20:30 AM

I very much doubt it. If it was truly audited by a reputable firm then the question as to whether or not the USDT was backed should be clear. If that's the case then I guess we could be more at ease knowing that at least part of their claims are true.

I'm pretty comfortable that the funds are real and that has been proven. The hack is more of a PR and reputational problem that could cause serious issues. At the moment they are saying they can prevent the stolen funds being moved by amending the code. If that turns out to be the case they might survive this.

I have read that there is no official audit data provided by a competent body. And there is a very good reason for that : there are no funds. And the hacks, as well Theter as Bitfinex are false flags to cover exactly that : there are no real funds. It is only counting down now for the cover blowing off the kettle... .

TheQuin

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Quote from: AT101ET on November 21, 2017, 11:20:30 AM

I very much doubt it. If it was truly audited by a reputable firm then the question as to whether or not the USDT was backed should be clear. If that's the case then I guess we could be more at ease knowing that at least part of their claims are true.

I'm pretty comfortable that the funds are real and that has been proven. The hack is more of a PR and reputational problem that could cause serious issues. At the moment they are saying they can prevent the stolen funds being moved by amending the code. If that turns out to be the case they might survive this.

Topic: What'll happen when USDT collapses? - page 3. (Read 1993 times)