Bitcoin Forum

As Tether (USDT) was founded in 2014 it was pegged to a phisical USD (nearly) 1 to 1. You gave them 1 USD and they stored the USD. If you would give them back the USDT you would get 1 USD back and the USDT token would be burned. But suprise: The USDT is still existing, traded, and for the future there is no guarantee that you get your USD back.

Tether Ltd. is in personal identity with BITFINEX (Paradise Papers) a 2014 founded company who was nothing more than a ponzi scheme, which was runned by child predators, fraudsters and poker god-mode givers. USDT as backbone of the global crypto lquidity you have to understand and be aware that Tether is since 8 years unaudited and is just pegged to USD in a ratio of 1 USDT to ~0,03 USD. Tether Ltd. basically loaned their insolvent "parent comany" and changed their USD-USTD-pegging to an USDT-"reserves"-pegging secretly. Now Tether is nothing more than a money printer creating money from thin air.

In the last days with the SBF investigations, indypendent investigators realized that Tether Ltd. on the Bahamas is just a "mail company" with empty office buildings.

So this is a warning: Do not hold large amounts of USDT or you will lose nearly everything!

Additional video informaton:

- Coffeezilla: https://youtu.be/-whuXHSL1Pg
- Bitboy Crypto: https://youtu.be/9Nl5r2Txs88
- Coindesk: https://youtu.be/ilJs8s1S_mU
- ClearValue Tax: https://youtu.be/2TKGgMLHL64

Additional text information:

- coingeek: https://coingeek.com/even-binance-thinks-the-tether-stablecoin-is-an-unbacked-scam/
- Blockworks: https://blockworks.co/news/tether-fraud-investigation-gets-new-leader-bloomberg
- Coindesk: https://www.coindesk.com/policy/2022/10/31/us-tether-bank-fraud-investigation-changes-hands-within-the-doj-report/
- Bloomberg: https://www.bloomberg.com/news/features/2021-10-07/crypto-mystery-where-s-the-69-billion-backing-the-stablecoin-tether

Thank you for your attention!

Roland Ionas Bialke

Don't want to protect Tether, but your links do not expose any fraud of Tether or imply a possibility of crashing.
Of course, Tether has issues, after all, it is a wild crypto product.
Nevertheless, is has the potential to become something big, assuming the right management. First, this stablecoin has the highest transaction volume to market cap ratio - meaning it is used for daily transactions, and payments, including cross-border transfers. We have done some research on it here https://www.observers.com/zoom-in-on-stablecoins/ If people find it convenient, that is the best property for money. Money is a social construct.
They work on transparency issues as well. They have issued an audited reserve report. https://www.observers.com/tether-new-attestation-of-reserves/
It is still not a full financial statement and the auditor is not from Big4. Further, the auditors are from the hometown of Tether CFO. But it is better than nothing.

Well i think there are discussions about USDT not being backed 1:1 by real USD anymore since at least a few years now because back then the company behind USDT changed the wording from "evey USDT is backed by a real Dollar" to "we have enough reserves to back every USDT minted" the big problem with this statement is, that nobody knows what kind of reserves they are having or if those reserves really exist.
Recently though i heard news that Bitfinex is now more open about their reserves and that they have published something, but i did not check that myself. If USDT would crash then i think we would see a crypto crash like never before though.

I'm not going to defend Tether, but they have a lot audit report and transparency about the pegged asset [1] if it's all fake of course those audit company will be in trouble since they're create fake report. But I think it's quite hard to believe if those company will want to create fake report, although Tether was accused it's not backed with a real USD. Anyway I never want to buy any centralized coin, DAI is much better than USDT.

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[1] https://tether.to/en/transparency/reports

Yeah same here, I will not also defend Tether but why the hate in recent days?

I saw some threads about it, saying that it will collapse as well and that it is running on fractional reserves. They have been speculate many years ago if I'm not mistaken and because they are not willing to open their books. But so far they are one of the most solid stable coins that we have in the market right now.

I would agree if the thread is like telling people to get out of exchanges or at least don't leave huge amount of money on it. But single handedly pushing for Tether to be the next one to collapse, then maybe we will have to see what will happen in the future.

I think this topic is not really to be questioned.

We-all know TETHER (USDT) is backed only around 60-70% not really backed 100%, also they can freeze your money as well. So, people sometimes paranoid holding USDT with the long term.

I also don't want hold USDT really a longer term.

When you say stuff like this it kinda reveals the amount of tinfoil and paranoia we are talking about. If you want to be taken seriously, stick to the facts.
There has been Tether fud as long as there has been USDT.

They must be most investigated crypto firm out there. Don't you think that amount of investigation they are going trough would at some point have revealed something why officials could shut their operation down?

I personally think that all this fud most likely originates from bitter bitfinex hack victims who weren't happy how Bitfinex dealed with the whole hacking scandal.

https://tether.to/en/tether-proves-resilience-of-reserves-in-latest-attestation/
Tether Proves Resilience of Reserves in Latest Attestation

You can read the latest assurance opinion and the Consolidated Reserves Report: https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPhvnHM/6d1608c90bb775d2d432b7b24264da28/ESO.02_Std_ISAE_3000R_Opinion_30-9-2022_RC134792022BD0548.pdf

The Management of the Company asserts the following as of 30 September 2022:

The Group’s consolidated total assets amount to at least US$ 68,061,618,458.

The Group’s consolidated total liabilities amount to US$ 67,811,510,720, of which US$67,805,112,981 relates to digital tokens issued.

You may or may not believe this report, but it is better to diversify your stablecoins.

It's been a long issue that's still active these days. What I don't like with them is about they're free to freeze someone's asset but this is more favorable to those that have stolen USDTs and they're the scammers and the hackers.

Well, with that worry about them with a possible crash. You know what's going to be the most affected? First, it will be the price of bitcoin and then the entire market will crash as well.

We've got other stable coin/s that are decentralized like DAI if you want to use them.

Tether USDT you can exchange to any crypto via many exchanges without any problem, so this is stable coin. Plus if you transfer Tether USDT TRC20 via TRON network, USDT transfer is free for up to 5 daily transfers ( plus some TRON expenses too for each transfer ) and very fast. For more free USDT transfers TRON freeze required. So the only transfer fees are some TRON crypto, which is very low price. Therefore Tether USDT is vey popular and I do not see why it can crash ?

We have been hearing rumours of tether not fully backed on ratio 1:1 with usd for si long, this is no longer news, I expect if there is anything seriously fishy the authorities should be on their tail to uncover this big mistery. Nonetheless, it is better to be safe than sorry, anyone holding a large amount of usdt should do what is necessary before it becomes too late.

I just use USDT for coin transfer, nothing more nothing less.  I don't hold USDT because I am more comfortable holding a volatile cryptocurrency.  There is no excitement if our holdings are stable.  Yes, it can preserve the value but there is neither profit to get while holding it.

It is worth noting this:


They have been fined for their false claim of the USDT being backed by reserver 1:1 and now another false statement about their office in the Bahamas.  I wonder how many lies they are hiding from us.  But well, I think I should not concern myself about these matters because I never hold USDT longer than 1 day.

I have never stacked this kind of coin, precisely any stablecoin.
Trust issues would be the biggest reason for that and the question of why invest with a coin that is just the same value as the paper USD.
I mean, if I will be investing in USD then I'd rather hoard the fiat than in cryptocurrencies. It's not that hard to buy those in people although I think banks are not allowing it.
I used it maybe just for an exchange, without a choice but that's it.

Companies in an offshore location are obviously hiding something from the government.
This has been an issue for a very long time. That auditing Tether becomes impossible because them just reasoning it will take time. If the government can print USD just as much as they want, this is also Tether printing as much as they can. We are still in this old fiat system because of this stablecoin.

The Tether scam is nothing new. It is a known scam I believe since 2017-2018. The thing is somehow they keep it going because most of the crypto trading volume is happening on tether and if tether goes down, crypto will go down with it. If crypto goes down, almost ever crypto exchange will go down with it and this will affect anyone who holds crypto.

Tether may go down tomorrow or 2 years later from now but it will go down when no big whales are in the game. Obviously it is the retail small investors that will bite the bullet like it always happens.

If USDT is going to be a problem it should have happened before Luna and FTX, later Tether was audited and they drop proof of reserve too, that's what I read online but I will be surprised if something happened because right from day one all eye is on USDT and Tether.

If USDT collapses, We will experience a major devastative dump again just like we have on Luna and FTX. There are still many people who are using USDT and majority of them are newbies who just entered crypto scene last bull market. Tether has many issues before but one biggest issue of them is not having a 1:1 pegged with USDT which is a big hole for the company given that their project is a stable coin. We've seen Terra stable coin before that is depegged because of the flaw in their pegging mechanism. This can happen to USDT too this is why I don't hold USDT.

No.  If USDT collapses, a really tough winter awaits.  Remember USDT pairs are the most popular and Tether is the most trusted Stable coin out there.  If it fails, it will diminish the public's trust in Cryptocurrencies overall by a lot.  Reasonable or not, it would have a terrifyingly powerful impact.

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Regards,
PrivacyG

It is not quite correct to compare USDT and UST, since they are two different asset classes. Tether is a centralized stablecoin backed by dollars and securities, while UST was an algorithmic stablecoin that used the LUNA peg as collateral. If Tether were to crash, the consequences would be even worse than the FTX crash, since most exchange trades are linked to Tether, if USDT crashes, bitcoin could easily drop below $10,000.

Correct me if I'm wrong, but isn't Tether Ltd headquartered in Hong Kong? I think Teher Ltd which is located in the Bahamas is not the original Tether Ltd but a similar company, because logically how can a company the size and magnitude of Tether Ltd be a postal company with empty office buildings? If I'm wrong it would really be a disaster. Me, I naturally do not trust any currency that is supported by central parties. Therefore, as you mentioned, we should not put all our wealth in one stablecoin, as there are many other alternatives. The BUSD is good, as it is supported by the Binance platform, But we also do not trust it completely and diversify our currencies.

This could trigger another bear trend and maybe this will be the worst one.
Stablecoins are on a big threat right now and if USDT fall into a big drop as well, then it will be hard for the market to rise again and for sure, the trust for stablecoins will be at risk. USDT should address every issues and assure the public about the safety of the funds, hoping that this is just a rumor.

Actually, trust in stablecoins has already been disturbed after several crashes and scam issues. Investors are now about to think if they will invest them or not knowing the high risk and possibly losing their money. As this issue has been spreading and perhaps, it was alarming already - people will not put their money into them (stablecoins) and tend to stay away from them.

I have been using Tether before for my trade but now, after all the issues have been raised, I already stop and not use it anymore.

people should take this precaution seriously. it is not the first time usdt got into this kind of issues. remember, way back in 2019, the tether team itself stated that they were not fully backed with assets. now, we don't know if they are saying absolute truth about their assets. we can use them for trading purposes but holding them long term is not advisable in my opinion. it can go down without a warning.

@OP
stablecoins have a number of inherent problems regardless of their actual "solvency".
I personally wouldn't use them regardless of it and in fact I don't :) and as much as possible in my small way I always discourage their use ;)

I don't have the tools or the knowledge to deny or affirm that what you say is true, however, if you call a service as a scam / ponzi you must present tangible supporting evidence! otherwise it is really difficult to be taken seriously and these allegations can be classified as FUD.

Please elaborate on what those other inferent problems are, because solvency is the only thing that comes to mind. Because if stablecoins are solvent they work exactly as they are supposed to work.

Or are you talking about the centralized connection to fiat money and that they must have technically reversable transactions? That's unfortunately unvoidable when you are talking real life assets backed stablecoins and there's no way around it. But aml regulations are going to be very tight for cryptos with permissionless transactions as well.

if you ask me this question it means that you have never read their TOS :) https://tether.to/en/legal/#terms-of-service ::) .
I always invite people to do such read, because it effectively makes a product of this kind centralized and with a whole series of risks.
Pretty different from bitcoin and the nature of a "crypto currency".

Of course, there are many disagreements about stablecoins, but it seems to me that Tether is quite large in capitalization and enjoys more trust than other stablecoins! but again, behind these stablecoins, as if there is some secret! But there is an interesting point that Ethereum and Tether have been recognized as a commodity, but what can this mean?

In this case i said that  Tether is a stablecoin and huge amount of people used that Stablecoins in different forms so without any proof why we agreed this agreement tether are crash soon ect . Its a very strong project and i simply said that anyone have some solid proof so its ok otherwise without proof not anyone agree.

USDT and UST are not comparable , whales still use it to transfer (probably hold) their millions dollars. check whale alert transactions , either USDT or USDC , they use these two , and rarely DAI. i never seen any of them use UST. just random people on reddit promoted it thinking its a big thing and USDT is trash. if millionaires and big money trust USDT then why shouldn't i? they always know these things better than average person.

In the current situation no coin can be fully trusted and is USDT not able to price 1:1 now.  So it's a bit risky and crashes can happen with it too like UST.  So I only use USDT for my fund transfers and later convert them to Bitcoin or other valuable currencies and if I intend to hold constable coins I prefer BUSD and USDC. But even these are not 100% reliable too

saw a few strings about tether , saying that it will fall too and that it is running on partial stores. They have been hypothesize ages ago all things considered and in light of the fact that they are not ready to open their books. Yet, up until this point they are quite possibly of the most strong stable coin that we have in the market at the present time.

The biggest fear in the crypto market right now is the proof of reserve being peddled by may projects, I think this will easily deceive newbies into trusting some of these scam projects who may present or publish a fake proof of reserve balance, just to lure investors into investing in their scam, just like Luna and FTX did.