Stablecoin Issuer Tether Ordered by US Judge to Produce Documents Showing Backing of USDT

  1. There's something very odd about knowing the fact that if you simply completed a full audit, faith in USDT would be unshakable. If your audit shows that you have full collateral backing, there would be no de-pegging at all, fluctuations would be simply be network congestion.

  2. I am sure corruption will 'solve' the problem if there is any problem. A gov official would receive a nice bribe and next you know will be positive news about USDT on tv.

  3. TLDR: The order requires Tether to produce “general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements”, as well as records of any trades or transfers of cryptocurrency or other stablecoins by Tether including information about the timing of the trades as well as details about the accounts it holds at Bitfinex, Poloniex, and Bittrex

  4. Even if Tether is able to "create" a lot of these documents to show that they are fully capitalized, it sets up huge, IE: criminal, penalties and it's basically providing them with enough rope to hang themselves.

  5. Imagine the market crash if it really turned out the emperor was not wearing any clothes, and Tether finally crumbled. We'd go through every shade of red in the crayola collection and then some.

  6. I think deep down we all know Tether isn't fully collateralized, but we're all pretending it is because of the havoc it would wreak on our portfolios.

  7. If USDT dissapears overnight pretty much every CEX would shutdown for a week, every defi would be obliterated and by the time trading is open BTC would be at 1k or less and volatility would be like LUNA crash up and down for quite some time

  8. Now we will find out USDT is mainly backed by the CEOs air miles and an assortment of vintage wines in his basement, the value of which has yet to be independently verified

  9. tldr; The order relates to an ongoing lawsuit that alleges that unbacked USDT issuances have caused $1.4 trillion in damage to the market.

  10. "As you can see, we're backed by the finest monopoly money. Remember Toys R Us? They only made that comeback because we bought their entire stock of Monopoly games 100 times over. Now who wants to buy a stablecoin?!"

  11. They can't hold it back forever. I just hope Tether has time to slowly die before anything bad comes to surface so they won't drag the markets with them.

  12. USDT is EVRYWHERE…. If they go under or are found out to be a fraud, the crypto market is absolutely going to going to go down with it. Along with some exchanges I’d imagine

  13. I’m likely not to put anymore money into crypto until post tether collapse. It’s gonna happen eventually and I don’t wanna be raped when it does.

  14. This is not the first time a court has done this to Tether. At some point, you would think that it would be easier for Tether to just be transparent.

  15. Tether literally cannot prove they are backed. That's why they fight so desperately to make sure they never show any financial records ever, minus bullshit snapshots of a predetermined time.

  16. Once it’s found out that there’s no secret sauce and that this is just a house of cards … then all the USDTs going to come crashing down.

  17. Look, it’s pretty standard stuff. There are tranches of USDT, and each one is backed by a different yet-to-be constructed condominium in Guangzhou. Totally stable. Now, some of them are backed by yet-to-be constructed condos in Donetsk, you don’t want those. Still, every condo is the equivalent of 400k USDT and you can visit whenever you are able to get the paperwork in order.

  18. The opposite. People will trade their falsely-backed stablecoins to BTC and ETH before the government points out the truth about most of these stablecoins. Do it now before it is too late.

  19. I think anyone that knows what they are doing knows to avoid tether. This will not be good for the market in general though..

  20. On the surface it seems improbable that they would have the almost 70B in backing. Weather or not it will cause issue down the road is another story. Im assuming they leveraged tether at some point (or manipulated the market) and it could’ve actually cleaned their books.

  21. Welp, this will be fucked, USDT being shown as unbacked can blow all the crypto lower, 10k BTC again, I will mortgage my home to buy that if it happens

  22. If Tether is what drove BTC prices, then the entire BTC market has been a lie. $10, $100, $10k, it means absolutely nothing. IF it is the case where Tether has been used to prop up the Crypto market, nobody knows where the bottom would be. We don't even know how functional the market is without Tether. Even saying you would mortgage your home at 10k BTC is insanely risky. We don't know to what extent the value of Crypto is based on fake Tether. This is all hypothetical assuming Tether has created money out of thin air.

  23. Wanted to buy some Bitcoin today, to DCA but I thiiiiiiiiiiiiiiink, it could be worth it to wait a couple of days.

  24. A big briefcase with paper chits of IOUs That's as good as money, sir. Those are I.O.U.'s. Go ahead and add it up, every cent's accounted for!

  25. This might be the begining of the end. Or they also might start gathering all their funds into one place and hand it as a proof.

  26. Haven’t had any tether FUD in a couple months. We were due for some. They have the backing… if they have time to move funds out of bitfinex into tether. When the audit is complete they can move funds back into bitfinex as needed. And the game of musical chairs goes on.

  27. Fiat is backed by the sum total of productive output of the nation which issues it, and its ability to service its debts, among other factors, such as stability, influence, military strength, etc.

  28. US finances already in a horrible situation so the courts response is ‘lets destroy it even more’. It makes zero sense tbh.

  29. Unpopular opinion here but while UST was shilled on here USDT still managed to hold the line even though everyone was just mocking it.

  30. Yeah it also withstood quite the bank run earlier in the year which many didn't think it would be able to.

  31. Fiat currency is backed by the productive capacity of the country that issues it and its ability to pay its debts, among other things. It's covered in a class called Econ 101.

  32. A US judge can't order a business in Singapore to do anything. They are wanting USDC to br the number one stable coin because it's American and then they would control the market even more.

  33. Honestly the US thinks they can do whatever they want. Crypto doesn't belong to one country, good projects are decentralised

  34. If crypto is a currency then it needs to be a medium of exchange which requires parties to accept a value in order to weigh the price of goods. If you think the US isn’t going to be involved in governing the 330+ million people of the US and the be involved in commerce of the largest economy in the world and that crypto can somehow exist outside the bounds of any government then idk what to tell you but that was never a reality if there is ever to be mass adoption

  35. I mean has anything ever really stopped the US from doing what ever they want? If ya got something they want they’ll just make up an excuse to kick down your door wmd or no wmd then just continue on unabated

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