I agree ... a problem only if it is fraud .... if it is not fraud then it is not a problem. Looks good on the outside but not on the inside. You can have that problem at the greengrocer buying fruit and veggies. That's the market ... it is one's own choice to buy in or not ... is it a snake or a piece of rope? ... consider and make your own choice.
The market needs Tether as an on and off ramp as many currencies aren't able to be traded directly for BTC or the alt-coins. As long as Tether does this, the market is not obviously concerned with the accounts of their reserves. Obviously many weren't. Tether is neither a Ponzi, no one buys USDT hoping for capital appreciation (unless you're a small timer looking to maybe do a forex play), nor is it a publicly listed company selling shares.
If Tether conjures up new tethers out of thin air then that is a fraud no matter what you call it. An audit would solve the questions but it sounds like you think it is not needed...
Yes, but if they don't then it's not fraud. I agree that an audit would add clarity, but it really doesn't bother me because it's just a side issue in the big picture, much like BTC's energy consumption and CBDCs for example. They're just FUD on the periphery. Interestingly this is exactly how our current monetary system operates, but I don't consider it a fraud because there are systems in place that are supposed to protect it and I understand those systems. I don't have a problem either with Frax conjuring up new FRAX stablecoins because there are supposed to be protocols in place to protect it and I have a moderate grasp of those protocols, not down to the coding level, just at the functional level. Tether is a lot simpler to understand than both the algorithmic stablecoin FRAX and our current monetary system, so for now if it works I'm happy. If it fails then those holding USDT will find that they have a huge hole in their investments, but the impact will be short-lived as the value of BTC and the alt-coins is not determined by the issuance of Tether. The moral of the story, if you're worried about Tether or Circle/Coinbase or Frax etc becoming insolvent, don't hold stablecoins, just stick to the other cryptocurrencies or hold your native currency and only use the stablecoins when you need to get into or out of the market.
News outlets today: https://www.bloomberg.com/news/arti...s-said-to-face-criminal-probe-into-bank-fraud Tether Executives Said to Face Criminal Probe Into Bank Fraud DOJ examining whether banks were misled about crypto business Tether says it’s committed to cooperating with law enforcement A U.S. probe into Tether is homing in on whether executives behind the digital token committed bank fraud, a potential criminal case that would have broad implications for the cryptocurrency market. Tether’s pivotal role in the crypto ecosystem is now well known because the token is widely used to trade Bitcoin. But the Justice Departmentinvestigation is focused on conduct that occurred years ago, when Tether was in its more nascent stages. Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential. Criminal charges would mark one of the most significant developments in the U.S. government’s crackdown on virtual currencies. That’s because Tether is by far the most popular stablecoin -- tokens designed to be immune to wild price swings, making them ideal for buying and selling more volatile coins. The token’s importance to the market is clear: Tethers in circulation are worth about $62 billion and they underpin more than half of all Bitcoin trades. -- Federal prosecutors have been circling Tether since at least 2018. In recent months, they sent letters to individuals alerting them that they’re targets of the investigation, one of the people said. The notices signal that a decision on whether to bring a case could be made soon, with senior Justice Department officials ultimately determining whether charges are warranted. The probe is reaching a tipping point as stablecoins attract intense scrutiny from regulators. The U.S. Treasury Department and Federal Reserve are among agencies concerned that the tokens could threaten financial stability, and are obscuring transactions tied to money laundering and other misconduct because they allow criminals to make payments without going through the regulated banking system. Treasury Secretary Janet Yellen said last week that watchdogs must “act quickly” in considering new rules for stablecoins. --
Is Binance having problems? The Binance.US CEO just resigned after only 4 months. https://www.forbes.com/sites/steven...signs-after-only-four-months/?sh=131dc9486500
Hackers allegedly breached blockchain-based platform Poly Network and extracted more than $600 million in cryptocurrencies, the company announced Tuesday, marking the biggest hack ever in the decentralized finance space that's heating up among investors. https://www.forbes.com/sites/jonath...es-marking-one-of-cryptos-biggest-hacks-ever/
BitMEX fined 100 million dollars for violations of the Bank Secrecy Act (BSA) and FinCEN’s implementing regulations. https://www.fincen.gov/news/news-re...forcement-action-against-unregistered-futures
Hackers steal over $600 MILLION in one of the biggest crypto heists ever https://www.rt.com/business/531719-hackers-rob-cryptocurrency-exchange/
LONDON/SINGAPORE/HONG KONG (REUTERS) - Hackers behind one of the biggest ever cryptocurrency heists have returned more than a third of US$613 million (S$830 million) in digital coins they stole, the company at the center of the hack said on Wednesday. Poly Network, a decentralised finance platform that facilitates peer-to-peer transactions, said on Twitter that US$260 million of the stolen funds had been returned but that US$353 million was outstanding. The company, which allows users to swop tokens across different blockchains, said on Tuesday it had been hacked and urged the culprits to return the stolen funds, threatening legal action.
It is very unlikely that the money will be returned. Because of such hackers I am afraid to invest a lot of money in cryptocurrency.
"threatening legal action"... wow shaking in their boots. They probably threatened something way more frightening. That kind of money comes with blood.
surprisingly most of the funds were returned by the white hat hacker and got a job offer of chief of security https://www.coindesk.com/over-half-of-stolen-fund-from-poly-network-hack-now-returned