Tether is a controversial cryptocurrency with tokens issued by Tether Limited. It formerly falsely claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Bitfinex exchange was the subject of a lawsuit by the New York Attorney General of using Tether's funds to cover up $850 million in funds missing since mid-2018. According to the New York Attorney General, "Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie".
(edited)Tether is a controversial cryptocurrency with tokens issued by Tether Limited. It formerly falsely claimed that each token was backed by one United States dollar, but on 14 March 2019 changed the backing to include loans to affiliate companies. The Bitfinex exchange was the subject of a lawsuit by the New York Attorney General of using Tether's funds to cover up $850 million in funds missing since mid-2018. According to the New York Attorney General, "Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie".
(edited)Tether is a cryptocurrency which Tether Limited had claimed to be pegged to the US dollar. Tether is closely associated with Bitfinex, with whom, as of 2018, they shared common shareholders and management. In 2017, critics raised questions about the relationship between Bitfinex and Tether.
In February 2021, Bitfinix agreed to pay $18.5 million in a settlement with the New York Attorney General's office regarding allegations over Bitfinex parent iFinex making false statements about the backing of Tether and the movement of hundreds of millions of dollars between the two companies to cover up massive losses by Bitfinex in 2017 and 2018. As part of the agreement, Bitfinix will end all trading activity with New Yorkers.
Tether is a cryptocurrency which Tether Limited had claimed to be pegged to the US dollar. Tether is closely associated with Bitfinex, with whom, as of 2018, they shared common shareholders and management. In 2017, critics raised questions about the relationship between Bitfinex and Tether.
In February 2021, Bitfinix agreed to pay $18.5 million in a settlement with the New York Attorney General's office regarding allegations over Bitfinex parent iFinex making false statements about the backing of Tether and the movement of hundreds of millions of dollars between the two companies to cover up massive losses by Bitfinex in 2017 and 2018. As part of the agreement, Bitfinix will end all trading activity with New Yorkers.
Research by John M. Griffin and Amin Shams in 2018 suggests that trading associated with increases in the amount of tether and associated trading at the Bitfinex exchange account for about half of the price increase in bitcoin in late 2017.
Research by John M. Griffin and Amin Shams in 2018 suggests that trading associated with increases in the amount of tether and associated trading at the Bitfinex exchange account for about half of the price increase in bitcoin in late 2017.
Reporters from Bloomberg, checking out accusations that tether pricing was manipulated on the Kraken exchange, found evidence that these prices were also manipulated. Red flags included small orders moving the price as much as larger orders, and "oddly specific order sizes—many going out to five decimal points, with some repeating frequently." These oddly sized orders might have been used to signal wash trades in automated trading programs, according to New York University Professor Rosa Abrantes-Metz and former Federal Reserve bank examiner Mark Williams.
According to Tether's website tether can be newly issued, by purchase for dollars, or redeemed by exchanges and qualified corporate customers excluding U.S.-based customers. Journalist Jon Evans states that he has not been able to find publicly verifiable examples of a purchase of newly issued tether or a redemption in the year ending August 2018.
Subpoenas from the U.S. Commodity Futures Trading Commission were sent to Tether and Bitfinex on 6 December 2017. Tether's former auditor, Friedman LLP, has also been issued a subpoena. Noble Bank in Puerto Rico was reportedly handling dollar transfers for Tether. Noble, in turn, used the Bank of New York Mellon Corporation as its custodian. As of October 2018, Noble Bank has put itself up for sale and reportedly no longer has banking relationships with Tether, Bitfinex, or Bank of New York Mellon. Though Bitfinex lacks the banking connections to accept dollar deposits, it has denied that it is insolvent.
(edited)Tether announced a new banking relationship with Bahamas-based Deltec Bank in November 2018, releasing a letter, purportedly from Deltec, that said it had $1.8 billion on deposit with the bank. The letter was two paragraphs long and signed with an illegible squiggle, without a printed author's name. A Deltec spokesperson declined to confirm the information in the letter to Bloomberg reporters.
Some studies have argued that use of Tether in trading on online cryptocurrency exchanges has resulted in arbitrage trading strategies between countries. In fact, it has even been thought that arbitrage trading of Tether in countries of low Bitcoin premium to high Bitcoin premium accounts for up to 80% of all Bitcoin returns on these exchanges.
Journalist Jon Evans states that he has not been able to find publicly verifiable examples of a purchase of newly issued tether or a redemption in the year ending August 2018.
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// you: haha jk i wouldnt go against the devs wishes
// you: unless...
// developer: o-o
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