$ (USDT) USD Tether - fake USDs, now worth $0.98

[CrunkLord420]

Bitfinex recently moved from Noble Bank to HSBC. This had caused a disruption in deposits, and a significant ($50+) BTC premium on USDT based exchanges.

Comparison of multiple exchanges, note how Bitfinex, Poloniex and Binance are higher in price than Bitstamp, Gemini and Coinbase.


Bitfinex released a statement, saying that nothing is actually wrong, that the deposit delay is resolved. https://medium.com/bitfinex/a-response-to-recent-online-rumours-677de7c4d171 (https://archive.fo/kZbmG)

USDTUSD pair on Kraken, showing that the price of the USDT has not recovered, despite assurances from Bitfinex.


I do not hold any USDT at the time of this posting, for obvious reasons. Bitfinex can make statements all they want, but the chart disputes their assurances.

 

[Skeletor]

It’s happening.

 

[CrunkLord420]

https://medium.com/bitfinex/fiat-deposit-update-october-15th-2018-18ddd276c3fd (https://archive.fo/c7vB8)

Bitfinex
Bitfinex is the world’s leading cryptocurrency trading platform.
Oct 15
Fiat Deposit Update — October 15th, 2018
On Thursday, October 11th 2018, Bitfinex decided to temporarily pause fiat deposits (USD, GBP, EUR, JPY) for certain customer accounts in the face of processing complications. Whilst acting as an inconvenience for certain users, it is important for us to clarify that:

1. All cryptocurrency and fiat withdrawals are, and have been, processing as usual without the slightest interference;
2. All fiat (USD, GBP, JPY, EUR) withdrawals are processing, and have been, as usual;
3. Fiat deposits have been temporarily paused for certain user groups.

We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16, 2018, to allow for the efficient processing of fiat deposits. Until then, we apologise for the inconvenience of the situation.

We are grateful for the patience and forbearance that our users have shown us this week as we work to restore fiat deposit operations.

https://twitter.com/BitMEXResearch/status/1051735444671660032 (https://archive.fo/WFPuZ)

The USDT dropped to 85 cents against the USD

Goldman Sach's USDC dropped to nearly 50 cents against the USDT.

Bitfinex may actually enable deposits tomorrow, but I don't believe it until they have a stable bank account for several weeks and the charts start to recover.

USDTUSD market back to normal, BTC premium on USDT exchanges still unchanged though. I'm selling BTC on Binance for USDT. Buying BTC on a perpetual futures contract.

 

[CrunkLord420]

Bitfinex is going to stop treating USDT as "USD" on their exchange, which has given their BTC/USD pair a 5%+ premium. This is a big deal, and really puts the writing on the wall for tether in my opinion. Apparently people with "USD" already on Bitfinex will be credited as if they had USD, and after the deadline any new USDT deposits will specifically be treated as USDT, to be traded against a new USDT/USD trading pair (like on Kraken).

Meanwhile the Tether corporation is announcing you need $100k to do a proper 1:1 pegged withdrawal back to fiat USD. Otherwise you'll be stuck with the trading pair (which trades below 1:1)

https://medium.com/bitfinex/bitfine...nd-launches-new-stablecoin-pairs-a84b7ccbfd86 (https://archive.fo/Ny19O)

Bitfinex announces Tether neutrality and launches new stablecoin pairs
Continuing our heritage of providing a neutral, coin-agnostic platform, from today Bitfinex users will be able to trade Tether-fiat directly on our platform through the addition of USDT/USD and EURT/EUR Tether trading pairs. This replaces the previous 1:1 conversion on deposits and withdrawals provided by Bitfinex, and reflects the increasing range of choice in the stablecoin market and demands from our consumers.
Tether was created October 6th 2014 in response to a clear market need to allow movements of funds quickly between different exchanges, whilst benefiting from the stability of the US Dollar. It remained the sole stablecoin in the market until March 2018, with a handful of alternatives launching this year.
Historically by providing the guarantee of the Tether / US Dollar 1:1 peg, Bitfinex has protected customers, ensuring they can redeem at any time. Having increased visibility of Tether through some shared executive team members gave Bitfinex the confidence to commit to this approach.
Now in reflection of the evolved stablecoin market, and in keeping with our ethos that an exchange should be a neutral actor, wallets on Bitfinex will support Tether balance USDT and EURT in addition to the existing USD and EUR fiat balances. Users may then use this new pair to convert fiat to Tether and vice versa as desired. This effectively means that Bitfinex users can deposit, trade and withdraw USD and EUR in both fiat and Tether denominations.
At Bitfinex we are proud to consistently be first in market in supporting forks and access to all major currencies. We were the first to introduce alternative stablecoins onto our platform, including Dai (an Ethereum collateralised stablecoin), and we will introduce new stablecoin pairings as and when demand is high enough to list them on our exchange.
All existing USD balances on Bitfinex will remain fiat and unaffected by this change. Any Tether deposits initiated before 14:30:00 UTC on the 27th of November will be credited to the user’s fiat wallet balances, whereas Tether deposits initiated after this cutoff time will be credited as Tether (USDT). As always, our dedicated support team will be available 24/7 for any queries around this change.
This update is launched in conjunction with increased flexibility in the redemption of Tether with a major update to the Tether.to platform. Customers are now able to redeem their USDTs to USD directly through the newly-updated Tether.to platform. The Tether website now supports full account verification whilst allowing for direct Tether-to-fiat conversions at a fixed 1:1 rate. See the full Tether announcement here to find out more.
As a team, we will continue to work hard to provide the best solutions for our customers, with the technology, expertise, and drive to adapt and evolve as quickly as the crypto market moves.
The Bitfinex Team

https://tether.to/tether-reopens-ac...-direct-redemption-of-fiat-from-its-platform/ (https://archive.fo/M4DTu)

Tether reopens account verification and direct redemption of fiat from its platform

Today marks an important step in Tether’s journey, as we launch a redesigned platform allowing for the verification of new customers and direct redemption of Tether to fiat.

Tether was created October 6th 2014 in response to a clear market need to allow movements of funds quickly between different exchanges, whilst benefiting from the stability of the US Dollar. Although originally designed as trader agnostic, as the first stablecoin it was impossible to predict adoption levels and impact on the market over time.

Due to the unexpected rush of new cryptocurrency traders over the last year, Tether grew at an unpredicted rate, quickly making the initial model (enabling direct redemption of Tether to fiat through its native platform) unsustainable. In this environment, it made sense to take the stress off growing pains by flexing the existing model to harness the established infrastructure and security of Bitfinex, which was built to withstand a much larger volume of customers. Those wishing to redeem could do so 1:1 via Bitfinex with whom we had a business to business relationship.

Against this backdrop and with alternative stablecoins entering the market, Tether has maintained its stablecoin market domination, but naturally differentiated, with heavy adoption amongst professional investors.

Now, thanks to stronger banking as a result of our new relationship with Deltec, Tether is able to return to its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party. This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon.

New Account Requirements and Fee Structure

Designed with Tether’s professional investor audience in mind, from 27th November 2018, all accounts will have new minimal issuance and redemption requirements equal to 100,000 USD and $100,000 USD₮, respectively.

Our new cumulative fee structure for withdrawals and deposits within a 30 day period is displayed below:

Transaction Value Range Fee per fiat Withdrawal* Fee per fiat Deposit Fee per Tether Deposit or Withdrawal
100,000 USD to 999,999 USD The greater of $1,000 or 0.4% 0.1% FREE
1,000,000 USD to 10,000,000 USD 1% 0.1% FREE
10,000,000 USD and over 3% 0.1% FREE
* Tether customers are limited to one USD fiat redemption per week.

Through this update we are proud to offer greater flexibility and utility to Tether’s customers, and a return to our original mission for the stablecoin. Our team is working tirelessly to ensure smooth transition to this new system, and will be available to answer queries on support@tether.to.



The Tether Team

Note to mods: merging posts with charts defeats the purpose which is to show I'm not going back to edit the charts.

 

[Tookie]

https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal?ref

NEW YORK – New York Attorney General Letitia James today continued her efforts to protect investors from fraudulent and deceptive virtual or “crypto” currency trading platforms by requiring Bitfinex and Tether to end all trading activity with New Yorkers. Millions around the country and the world today use virtual currencies as decentralized digital currencies — unlike real, regulated government currencies, including the U.S. dollar — to buy goods and services, often times anonymously, through secure online transactions. Stablecoins, specifically, are virtual currencies that are always supposed to have the same real-dollar value. In the case of Tether, the company represented that each of its stablecoins were backed one-to-one by U.S. dollars in reserve. However, an investigation by the Office of the Attorney General (OAG) found that iFinex — the operator of Bitfinex — and Tether made false statements about the backing of the “tether” stablecoin, and about the movement of hundreds of millions of dollars between the two companies to cover up the truth about massive losses by Bitfinex. An agreement with iFinex, Tether, and their related entities will require them to cease any further trading activity with New Yorkers, as well as force the companies to pay $18.5 million in penalties, in addition to requiring a number of steps to increase transparency.
“Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system. This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not. Last week, we sued to shut down Coinseed for its fraudulent conduct. This week, we’re taking action to end Bitfinex and Tether’s illegal activities in New York. These legal actions send a clear message that we will stand up to corporate greed whether it comes out of a traditional bank, a virtual currency trading platform, or any other type of financial institution.”
A Stablecoin Without Stability – Tethers Weren’t Fully Backed At All Times
The OAG’s investigation found that, starting no later than mid-2017, Tether had no access to banking, anywhere in the world, and so for periods of time held no reserves to back tethers in circulation at the rate of one dollar for every tether, contrary to its representations. In the face of persistent questions about whether the company actually held sufficient funds, Tether published a self-proclaimed ‘verification’ of its cash reserves, in 2017, that it characterized as “a good faith effort on our behalf to provide an interim analysis of our cash position.” In reality, however, the cash ostensibly backing tethers had only been placed in Tether’s account as of the very morning of the company’s ‘verification.’
On November 1, 2018, Tether publicized another self-proclaimed ‘verification’ of its cash reserve; this time at Deltec Bank & Trust Ltd. of the Bahamas. The announcement linked to a letter dated November 1, 2018, which stated that tethers were fully backed by cash, at one dollar for every one tether. However, the very next day, on November 2, 2018, Tether began to transfer funds out of its account, ultimately moving hundreds of millions of dollars from Tether’s bank accounts to Bitfinex’s accounts. And so, as of November 2, 2018 — one day after their latest ‘verification’ — tethers were again no longer backed one-to-one by U.S. dollars in a Tether bank account.
As of today, Tether represents that over 34 billion tethers have been issued and are outstanding and traded in the market.
When No Bank Backs You, Turn to Shady Entities — Bitfinex Hid Massive Losses
In 2017 and 2018, Bitfinex began to increasingly rely on third-party “payment processors” to handle customer deposits and withdrawals from the Bitfinex trading platform. In 2018, while attempting to “move money [more] efficiently,” Bitfinex suffered a massive and undisclosed loss of funds because of its relationship with a purportedly Panama-based entity known as “Crypto Capital Corp.” Bitfinex responded to pervasive public reports of liquidity problems by misleading the market and its own clients. On October 7, 2018, Bitfinex claimed to “not entirely understand the arguments that purport to show us insolvent,” when, for months, its executives had been pleading with Crypto Capital to return almost a billion dollars in assets.
On April 26, 2019 — after the OAG revealed in court documents that approximately $850 million had gone missing and that Bitfinex and Tether had been misleading their clients — the company issued a false statement that “we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded.” The reality, however, was that Bitfinex did not, in fact, know the whereabouts of all of the customer funds held by Crypto Capital, and so had no such assurance to make.
The OAG Investigation Shines a Light on Unlawful Trading in New York State
From the beginning of its interaction with the OAG, iFinex and Tether falsely claimed that they did not allow trading activity by New Yorkers. The OAG investigation determined that to be untrue and that the companies have operated for years as unlicensed and unregulated entities, illegally trading virtual currencies in the state of New York.
In April 2019, the OAG sought and obtained an injunction against further transfers of assets between and among Bitfinex and Tether, which are owned and controlled by the same small group of individuals. That action — under Section 354 of New York’s Martin Act — ultimately led to a July 2020 decision by the New York State Appellate Division of the Supreme Court, First Department, holding that:

• Bitfinex and Tether — and other virtual currency trading platforms and cryptocurrencies operating from various locations around the world — are still subject to OAG jurisdiction if doing business in New York;
• The stablecoin “tether” and other virtual currencies were “commodities” under section 352 of the Martin Act, and noted that virtual currencies may also constitute securities under the act; and
• The OAG had established the factual predicate necessary to uphold the injunction and require production of documents and information relevant to its investigation in advance of the filing of a formal suit.

Bitfinex and Tether Banned from Continuing Illegal Activities in New York
Today’s agreement requires Bitfinex and Tether to discontinue any trading activity with New Yorkers. In addition, these companies must submit regular reports to the OAG to ensure compliance with this prohibition.
Further, the companies must submit to mandatory reporting on core business functions. Specifically, both Bitfinex and Tether will need to report, on a quarterly basis, that they are properly segregating corporate and client accounts, including segregation of government-issued and virtual currency trading accounts by company executives, as well as submit to mandatory reporting regarding transfers of assets between and among Bitfinex and Tether entities. Additionally, Tether must offer public disclosures, by category, of the assets backing tethers, including disclosure of any loans or receivables to or from affiliated entities. The companies will also provide greater transparency and mandatory reporting regarding the use of non-bank “payment processors” or other entities used to transmit client funds.
Finally, Bitfinex and Tether will be required to pay $18.5 million in penalties to the state of New York.

In September 2018, the OAG issued its Virtual Markets Integrity Initiative Report, which highlighted the “substantial potential for conflicts between the interests” of virtual currency trading platforms, insiders, and issuers. Bitfinex was one of the trading platforms examined in the report.

This matter was handled by Senior Enforcement Counsel John D. Castiglione and Assistant Attorneys General Brian M. Whitehurst and Tanya Trakht of the Investor Protection Bureau; Assistant Attorneys General Ezra Sternstein and Johanna Skrzypczyk of the Bureau of Internet and Technology; and Legal Assistant Charmaine Blake — all supervised by Bureau of Internet and Technology Chief Kim Berger and Senior Enforcement Counsel for Economic Justice Kevin Wallace. The Investor Protection Bureau is led by Chief Peter Pope. Both the Bureau of Internet and Technology and the Investor Protection Bureau are part of the Division for Economic Justice, which is overseen by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.

 

[419]

So basically the only repercussions were for them to stop trading in one state, plus an $18m fine that they've already made in fees off this week.
I don't even know what the fuck to say except "lmfao"

 

[Leo Bonhart]

View attachment 1944014
So basically the only repercussions were for them to stop trading in one state, plus an $18m fine that they've already made in fees off this week.
I don't even know what the fuck to say except "lmfao"

There was a great tweet someone made in regards to the $18-million fine.

"ALERT: TETHER MINTS $18,000,000 WORTH OF USDT".

 

[Marvel Cinematic Universe]

>printing a fake, privately-controlled currency with no real-world backing that directly devalues the US Dollar
>lying about missing nearly $1bil

>$18m fine

good work, Lateeysha