Tether/USDT Security

[mmortal03]

I am not too worried about the USDT wobbling at the moment, but it is quite annyoing when I check the price of bitcoin.
I normally just look on Poloniex to see the alts and Bitcoin prices at once, now the Bitcoin price has little to do with the real USD price, so I have to go to Bitcoinity too.

I understand that these are 1st world problems, but I hope USDT gets back to dollar parity soon,

Use the Bitstamp chart. It's been around a lot longer, too: https://bitcoinwisdom.com/markets/bitstamp/btcusd

[JGoRed]

They are a lot less vulnerable to hacking and all, but since they're centralized I they are vulnerable to seizure and the like. I personally prefer to hold my USD in cash or in my bank account; I’ll leave crypto to BTC 

[ulhaq]

It's owned by Bitfinex.

So right now it's not safe to use.

If Bitfinex is able to clear its name then maybe. Maybe USDT will become safe to use again but right now that isn't the case yet. If you are looking for a payment processor for USD, look into BitUSD, or even centralised alternatives like perfectmoney which is irreversible or Advcash.

How do we know it's owned by bitfinex?

https://www.bitfinex.com/posts/31

We proudly support tether.

It does not say anything further. The article they link
https://finance.yahoo.com/news/tether-introduces-real-world-currency-160000085.html

only mentions integration with bitfinex. But they are integrated with poloniex too.

[mmortal03]

It's owned by Bitfinex.

So right now it's not safe to use.

If Bitfinex is able to clear its name then maybe. Maybe USDT will become safe to use again but right now that isn't the case yet. If you are looking for a payment processor for USD, look into BitUSD, or even centralised alternatives like perfectmoney which is irreversible or Advcash.

How do we know it's owned by bitfinex?

https://www.bitfinex.com/posts/31

We proudly support tether.

It does not say anything further. The article they link
https://finance.yahoo.com/news/tether-introduces-real-world-currency-160000085.html

only mentions integration with bitfinex. But they are integrated with poloniex too.

According to one of their lawyers at the following, the majority owners of Bitfinex (DigFinex) don't own Tether completely, but they do own a less than 50% share. I'd like to know who owns the rest: https://www.reddit.com/r/BitcoinMarkets/comments/66fiif/despite_claims_re_hkd_chf_there_are_currently_no/dgj1zz1/

[European Central Bank]

According to one of their lawyers at the following, the majority owners of Bitfinex (DigFinex) don't own Tether completely, but they do own a less than 50% share. I'd like to know who owns the rest: https://www.reddit.com/r/BitcoinMarkets/comments/66fiif/despite_claims_re_hkd_chf_there_are_currently_no/dgj1zz1/

it's hard enough figuring out who's who in bitfinex and where they're based. so if half of tether is already a bordering on a mystery, i'm not gonna put any faith in the totally mysterious other half.

bitfinex have always been mediocre at transparency. as soon as it was clear they were involved in usdt there was never any way i was going anywhere near them.

everything will probably be fine but the way they operate in every area simply ain't acceptable.

[leopard2]

Tether, Polo or Bitfinex are innocent victims of Uncle Sam bullying other banks and exchanges outside US

This is economic war, no less than economic warfare, Wells Fargo is just some kind of aircraft carrier equivalent

Disgusting.  

Time for exchanges to use a different fiat currency than USD, but can Americans even have non-USD accounts? Maybe a EUR account in a European country would work - it is all about the USD intermediary banks I guess. 

[ulhaq]

Tether, Polo or Bitfinex are innocent victims of Uncle Sam bullying other banks and exchanges outside US

This is economic war, no less than economic warfare, Wells Fargo is just some kind of aircraft carrier equivalent

Disgusting.  

Time for exchanges to use a different fiat currency than USD, but can Americans even have non-USD accounts? Maybe a EUR account in a European country would work - it is all about the USD intermediary banks I guess. 

Is this true? That is the reason that Taiwanese banks are not accepting exchanges?

Even so, some of the responsibility is tether's. they have disclaimed exchanging USDT for USD and have no third party audit of their accounts.

[CoinHoarder]

They are a lot less vulnerable to hacking and all, but since they're centralized I they are vulnerable to seizure and the like.

Someone correct me if I am wrong, but I don't think the Omni layer has a feature that allows asset issuers to seize funds. Thus, Omni layer assets (like Tether) are not subject to seizure. They can still be seized the old fashioned way though, the same way any other cryptocurrency or assets can be seized.

[sp_skeptic]

They are a lot less vulnerable to hacking and all, but since they're centralized I they are vulnerable to seizure and the like.

Someone correct me if I am wrong, but I don't think the Omni layer has a feature that allows asset issuers to seize funds. Thus, Omni layer assets (like Tether) are not subject to seizure. They can still be seized the old fashioned way though, the same way any other cryptocurrency or assets can be seized.

Tethers are supposed to be backed up by money in the bank equivalent to the circulating Tethers. It is this money that is vulnerable to seizure.

[bkbitcoin01]

Noob Question: Say Polioniex is hacked - would the hacker have any benefit from stealing the USDT? As it is a teathered crypto - is it only valid on Polionex? Can it be forked then or pulled back (ideally by the 'teather') to return the funds to the associated account?

Specifically - is USDT then Safter than BTC on an exchange in the event of a hack?

Thank so much - appreciate all of your expertise and insight!!

BK

[mmortal03]

Noob Question: Say Polioniex is hacked - would the hacker have any benefit from stealing the USDT? As it is a teathered crypto - is it only valid on Polionex?

No Bitfinex uses it to represent USD, other exchanges use it, and you can always cash USDT out at tether.to.