Bitcoin Forum

Wait until the regulators crack the lid on the exchanges and start doing some audits.

The shit is about to hit the fan:

https://www.bloomberg.com/news/articles/2018-01-30/crypto-exchange-bitfinex-tether-said-to-get-subpoenaed-by-cftc

Think they have the cash to back their claims  ::)

I don't believe they do



https://bitcointalk.org/index.php?topic=2839145.0

If this should go through and they are forced to carry out an audit, then Bitfinex and Tether must better be able to provide backing for the amount of Tether they have in the bank. Just like my earlier comment if this is bursted, the whole if USDT is gone for and that moment that happen, the market price of bitcoin is about to crash and this time, its going to be big and with reasons as well because there has been some theory that USDT was responsible for the pump in the price of crypto.

Regulators will surely come but if Bitfinex has a sound legal team that wants to go drag this matter, I feel the regulatory authority is acting ultra vires and the reason is that, unless there is a new law or the old law was amended to accommodate the type of  industry in which Bitfinex operates, there is no basis at all to investigate them.

So many exchanges are having people try to take them down. Oh well, there will be more exchanges. I suggest that everyone take money out of there before something worse happens.

I think Bitfinex has taken most of the money out already. They will let you keep the Tether coins though as a memento.

Those tether that are 'tied' to usd but will potentially be worth nothing in a few weeks or even less? In reality we just have to let this one play out and see what happens but I'll be avoiding tether in the meantime.

It was actually several weeks ago. Note that it timed with their fella's warrant canary doing a runner. That was picked up on at the time but no one pursued it much further.

No matter how this ends, it will be a good thing for Cryptos.  Either they will prove Tether is legit, or it will end this scheme before it grows more.

FWIW, the Tether market doesn't look too worried ... holding at 99 cents.

Apparently, bloomberg edited the article to put "sent subpoenas on Dec. 6"? meaning that this was almost 2 months ago.

So, would it be fair to assume that this was an attempt to shake up the market with FUD so that 'some people' can accumulate cheap BTC? or was it just an honest mistake? either way, it goes to show how fragile this market is (and has been for a while), a single headline is all it takes for the cryptocurrency market to drop in a matter of minutes (well, a headline and a few thousands of panic selling idiots).

It may have been sent on Dec 6th but it hasnt been public knowledge until now.

Also the legal wheels turn slowly, the outcome doesn't happen overnight.

Hang on, subpoena near two months ago, but many recent blogs, report highlighting "printing" happen since then?  Would Bitfinex carry on dodgy practice after being put on notice they are under scrutiny?

Another point that Bloomberg article raises is that the auditor may have been on a fishing trip, trying to find some fault.  Of course, Tether would say that, but its a good point that it must be fairly easy to produce an audit for a blockchain.

More than likely. They've always operated with a total disregard for regular niceties. Why would they let something like that stop them? They've gotten as far as they have with pure blag. They may as well wring out as much as they can.

Hard to produce up to $2.3 billion to back fill a gap overnight to satisfy an audit though.

This news just killed me today. Now it is worth attaining, because the fall can be very unexpected. :( But I'm sure it's worth waiting for, and not being nervous.  ;)

https://mobile.twitter.com/satoshilite/status/958427996209074176

Charlie Lee's take on the situation.

But this seems rather naive to me - https://mobile.twitter.com/SatoshiLite/status/958428292293390336

However he's Charlie Lee and I only used to be him.

Of the scenarios he outlined I think self fulfilling prophecy is the most likely one.

That. Bitfinex has no moral problems with any of their actions affecting their users and indirectly the entire market. I am glad that I have never used that exchange, which would make me feel pretty stupid after their faked hack and USDT trash. The fact that they were never willing to get the required licenses alone should be a major red flag for everyone, but people ignore it like it isn't a problem at all -- their logic probably is that if Bitfinex was operating illegally, they would have been raided already. It's a ticking time bomb that at any moment of the day can make the market tank badly, and if it turns out to happen, it doesn't come as a surprise....

This just a FUD. Don't know why a two-month-old news is again published as an update. Bitcoin is already under a lot of pressure from Government, it is a known fact that publishing a news like this at such a time would impact the prices max. The Bloomberg just did what it should not have. I got to know about this from this FB page who were quick to react and share the news.

https://www.facebook.com/coingape/

Seems about right imo.  The poster Marius question is pertinent "what happens when you take $2.2bn buy support out of the crypto economy".  That's only 1-1.5% of bitcoin capitalisation, or 0.4% total capitalisation ($522bn) today.  Also its not buy support, people sell bitcoin and other pairs to the convenience of USDT.  So how much impact should it really have, other than effect on confidence?

It's not like 'dollars' elsewhere. It's brand new money entering and buying. A lot of real dollars in daily volume will have been floating back and forth for years on end.

Tether is turbocharged buying power.

So no one buys Tethers? No one buys other coins?  The exchanges tell a different story.

So finally the FUD succeeded well played @bloomberg. Well, thanks to those who tried to spread awareness to as many as possible. Just found this article, good job guys.
https://coingape.com/cryptocurrency-prices-fall-amid-bloombergs-update-about-tether/

Yes, banksters will not stop FUDding, this is 2 months old news, they just removed the date in effort to bring the market down.

Is it not note worthy that the push to 20K happened pretty quick after the subpoenas and it has dropped off since. Getting as much $ as they can before cutting it out or proof that this is FUD and that the surge had nothing to do with it. Would be a pretty ballsey to make a big play like that immediately after being put on notice that your on the radar.

That article is not well written at all with no counter argument other than

"Please do not panic and just because you’re reading from an enough old and reputed media channel does not mean it is true."

Their line does not even make sense.

I think most people are in agreement that something is not sitting right with tether we just have to sit back and see how it plays out.

So this could be the reason why the price just dumped over $1000 in the last 15-17 hours that I have been watching it.
Was wondering why it all the sudden it dropped in price.
They do hold alot of bitcoin for an exchange.
I think only behind coinbase/gdax in the states.

Not sure man, market capitalisation is just a fake number, there are a lot of project worth $10-15millions and their value is zero (abandoned projects) as well as all cryptocurrencies are bubble, think about pump scenario. If Ripple was over $100B how many net worth you needed at the start when its price was a few billions? coins were under control devs and whales so there weren't opposite side who can sell and the way to reach $120B was cost just a few billions until they decided to cash out their profits newcomers.

From searching with google, all I have found is basically the same article.
Can anyone point me to the text of the subpoena?
Just what was Subpoenaed? Was it who?  And when, when is what/who to appear?
Can't find the what/who/when.