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Author Topic: Tether releases notarized evidence tether is backed by $2.55 billion in reserves  (Read 80 times)
Hydrogen
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June 21, 2018, 07:53:04 AM
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NEW YORK (Reuters) - A Washington-based law firm co-founded by former FBI director Louis J. Freeh has attested that as of June 1 cryptocurrency firm Tether had enough U.S. dollar reserves to back its virtual coins in circulation, according to a report released by Tether on Wednesday.

The report by Freeh, Sporkin & Sullivan LLP, comes a week after a University of Texas research paper alleged Tether’s token could have been used to manipulate bitcoin’s price last year during its meteoric rise.

Tether critics have raised concerns over the past year about whether it actually holds $1 dollar in reserve for every token called tether issued, as it claimed.

The FSS report is not a full audit of Tether, but states the law firm received sworn and notarized statements from Tether’s two banks which indicated the company had approximately $2.55 billion in its accounts on June 1.

“FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018,” the report said.

The day of the examination was selected by FSS, the law firm said in the report, adding that it conducted “comprehensive examinations and telephone interviews of key personnel at Tether and its banks.”


The report did not disclose the names of the banks and also stated “FSS did not, as part of the Engagement, arrive at any conclusions as to Tether’s compliance with applicable laws and regulations in any jurisdiction.”

Eugene Sullivan, a former federal judge and FSS cofounder, is an advisory board member of one of Tether’s banks, the report said.

FSS did not immediately respond to a request for comment.

Tether shares investors and management with Bitfinex, one of the world’s largest cryptocurrency exchanges.

“These allegations of manipulation are ... just completely misplaced,” Stuart Hoegner, Bitfinex’s general counsel, said in an interview.

Tether hired FSS in March and is in discussions with auditors for a full audit, Hoegner said.

Global regulators have been scrutinizing cryptocurrency markets following a rally in prices last year. The U.S. Commodity Futures Trading Commission and the Department of Justice are reportedly investigating whether the price of bitcoin is being manipulated.

In December the CFTC sent a subpoena to Tether and Bitfinex.

Hoegner declined to comment on whether Tether or Bitfinex were under investigation by the CFTC or the DOJ. He also declined to share the contents of the subpoena.

https://uk.reuters.com/article/us-cryptocurrencies-tether/cryptocurrency-firm-tether-releases-law-firm-report-attesting-to-u-s-dollar-reserves-idUKKBN1JG1SB

Its too early to draw conclusions. This might be loose evidence of allegations of tether being a "scam artificially manipulating markets to boost bitcoin's price" are false. If tether has $2.55 billion in their bank account, that makes it significantly more difficult for them to have spent a significant sum of their liquidity purchasing bitcoin to "artificially inflate its value"?

How much tether they have on hand in their accounts could be the key factor, given the study claimed they exchanged tether for btc. These notarized bank statements validate the concept of tether being backed by considerable fiat reserves. But may not quite serve as evidence of whether a significant quantity of tether was conserved rather than exchanged for btc in an effort to increase its value.

After six months of investigating tether, I think this case should have been resolved by now. It doesn't take six months to figure out whether collusion occurred. The lack of valid information & evidence could be the best evidence of tether being innocent here.

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June 21, 2018, 08:21:09 AM
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For me, this only raises further questions.  If the money really has been there all along, why wait until now to prove it?  Why not allow a full audit if there's nothing to hide?  And why only show that one, specific day?  How do we know the money was there on May 31st and earlier?  Maybe I'm unnecessarily suspicious, but this just doesn't sit well with me.  People have had suspicions of impropriety for some time now and this doesn't really feel like much of an attempt to allay concerns.  Rather than just a quick snapshot of records on that one day, I'd be more reassured by some records over a more prolonged period.  A full audit is still needed before I''ll be convinced.

If I had to guess, the money doesn't normally just sit there.  It gets "invested" (read "gambled with").  Which is why a full audit won't happen.  People would see what risks they're taking.

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June 22, 2018, 12:28:56 PM
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For me, this only raises further questions.  If the money really has been there all along, why wait until now to prove it?  Why not allow a full audit if there's nothing to hide?  And why only show that one, specific day?  How do we know the money was there on May 31st and earlier?  Maybe I'm unnecessarily suspicious, but this just doesn't sit well with me.  People have had suspicions of impropriety for some time now and this doesn't really feel like much of an attempt to allay concerns.  Rather than just a quick snapshot of records on that one day, I'd be more reassured by some records over a more prolonged period.  A full audit is still needed before I''ll be convinced.

If I had to guess, the money doesn't normally just sit there.  It gets "invested" (read "gambled with").  Which is why a full audit won't happen.  People would see what risks they're taking.

Tether's silence could represent a typical stance taken by an individual or corporation currently under investigation. They typically do not make public statements until after the investigation or trial is concluded. Tether could have chosen to release this data in response to the "academic study" in the news recently, claiming to have found evidence of price collusion between tether and btc's ath in 2017. That could the reason the date on the notary is very recent.

I think lawyers recommend against releasing public statements while under investigation. But in this case, tether might have felt that the media was distorting facts to make them appear guilty. And so they might have decided to break protocol and release data hinting at them being innocent.

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June 22, 2018, 01:07:57 PM
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NEW YORK (Reuters) - A Washington-based law firm co-founded by former FBI director Louis J. Freeh has attested that as of June 1 cryptocurrency firm Tether had enough U.S. dollar reserves to back its virtual coins in circulation, according to a report released by Tether on Wednesday.

The report by Freeh, Sporkin & Sullivan LLP, comes a week after a University of Texas research paper alleged Tether’s token could have been used to manipulate bitcoin’s price last year during its meteoric rise.

Tether critics have raised concerns over the past year about whether it actually holds $1 dollar in reserve for every token called tether issued, as it claimed.

The FSS report is not a full audit of Tether, but states the law firm received sworn and notarized statements from Tether’s two banks which indicated the company had approximately $2.55 billion in its accounts on June 1.

“FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018,” the report said.

The day of the examination was selected by FSS, the law firm said in the report, adding that it conducted “comprehensive examinations and telephone interviews of key personnel at Tether and its banks.”


The report did not disclose the names of the banks and also stated “FSS did not, as part of the Engagement, arrive at any conclusions as to Tether’s compliance with applicable laws and regulations in any jurisdiction.”

Eugene Sullivan, a former federal judge and FSS cofounder, is an advisory board member of one of Tether’s banks, the report said.

FSS did not immediately respond to a request for comment.

Tether shares investors and management with Bitfinex, one of the world’s largest cryptocurrency exchanges.

“These allegations of manipulation are ... just completely misplaced,” Stuart Hoegner, Bitfinex’s general counsel, said in an interview.

Tether hired FSS in March and is in discussions with auditors for a full audit, Hoegner said.

Global regulators have been scrutinizing cryptocurrency markets following a rally in prices last year. The U.S. Commodity Futures Trading Commission and the Department of Justice are reportedly investigating whether the price of bitcoin is being manipulated.

In December the CFTC sent a subpoena to Tether and Bitfinex.

Hoegner declined to comment on whether Tether or Bitfinex were under investigation by the CFTC or the DOJ. He also declined to share the contents of the subpoena.

https://uk.reuters.com/article/us-cryptocurrencies-tether/cryptocurrency-firm-tether-releases-law-firm-report-attesting-to-u-s-dollar-reserves-idUKKBN1JG1SB

Its too early to draw conclusions. This might be loose evidence of allegations of tether being a "scam artificially manipulating markets to boost bitcoin's price" are false. If tether has $2.55 billion in their bank account, that makes it significantly more difficult for them to have spent a significant sum of their liquidity purchasing bitcoin to "artificially inflate its value"?

How much tether they have on hand in their accounts could be the key factor, given the study claimed they exchanged tether for btc. These notarized bank statements validate the concept of tether being backed by considerable fiat reserves. But may not quite serve as evidence of whether a significant quantity of tether was conserved rather than exchanged for btc in an effort to increase its value.

After six months of investigating tether, I think this case should have been resolved by now. It doesn't take six months to figure out whether collusion occurred. The lack of valid information & evidence could be the best evidence of tether being innocent here.

Well, what ever may they say I truly support them since they are the ones who brings good news to the market and makes everything go green again.
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June 22, 2018, 01:33:19 PM
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The tether is the cryptocurrency property it was designed based on the tethered blockchain that is stored as bitcoin. Other tether currency was created to make a profit for the transfer and it was not an altcoin
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June 22, 2018, 09:30:14 PM
 #6

I'm actually happy that Tether is coming out to debunk these allegations because they are hefty ones and could spell doom for the entire market if nothing is done. However, I still believe its coming too late because this matter has been a recurring one even during the high price period and there were speculations around manipulations based on that. Rather than then coming out with irrefutable evidences, they decide to keep quiet and let the rumor continues forgetting that, when lies is being peddled for so long, it becomes the only thing people know which makes it the truth to them.

They did waited too long and even me despite the fact that I don't believe totally that the manipulation could actually be traced to Tether, a part of me still believe the report that its possible considering the indept nature of the research and the body releasing the report.

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June 23, 2018, 09:11:56 AM
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This still doesn't completely discount all negativity but it's a real step in the right direction and not having such accusations hanging over the market should be a really good boost. I'm actually quite surprised there hasn't been some sort of a market boost based on this news.

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June 23, 2018, 09:40:24 AM
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I'm actually quite surprised there hasn't been some sort of a market boost based on this news.

I haven't seen this story posted on reddit crypto sections. None of the crypto accounts I follow on social media have mentioned it, either. Its possible this news story is flying below the radar and hasn't received much mainstream attention or exposure. I haven't checked but it is also possible none of the crypto news sites are covering or rebroadcasting this, yet.

This is a story which could definitely use more attention.  Smiley

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June 23, 2018, 10:55:44 AM
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More good news about crypto. I believe that we have maybe even reached a low with this 6k level and that we are getting ready for a climb.

Looking for Reddit accounts? Well look no further, HIGH-QUALITY REDDIT ACCOUNTS FOR SALE: https://bitcointalk.org/index.php?topic=4960485.0
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June 23, 2018, 11:06:21 AM
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The main take away should be that whether or not they do have the funds to back it, tether is more of a company than it is a cryptocurrency.  You're effectively relying on that company and the promises they make.  At any time and for any reason, they can issue more tokens from nowhere.  It's not the same issuance model as other altcoins.

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June 23, 2018, 11:23:28 AM
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The thing that concerns me more is the fact that $2.55 billion is being kept in a corrupt Banking system and that the government can shutdown this in a blink of an eye. This is where Bitcoin is significantly better, because no centralized authority have control over your money and it is not backed by government controlled entities.  Roll Eyes

I think a full audit would comfort a lot of investors, but for now this is a good start. Let's rather call this a spot check.  Roll Eyes

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June 23, 2018, 01:24:36 PM
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I'm conflicted. I've believed that there's no way that Tether could be backed fully for so long that I want to reject anything that says the contrary lol. But uh, I guess this is something? There's still a gaping lack of details, but I guess a private company isn't really obligated to share everything with the public.

For now I'd probably give them the benefit of the doubt and assume that the notarized statement from the banks are legitimate. This proves that at one point, at the very least, they had more USDs in reserve than the Tethers in circulation. It doesn't prove that they've always backed Tethers completely, but this does increase the likelihood of them being able to in my eyes.

There's also this detail:

Quote
Tether hired FSS in March and is in discussions with auditors for a full audit, Hoegner said.

If they ever go through with it, I hope they release at least some details publicly.

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