Bitfinex and Tether sued for alleged fraud!

[shasan]

To know more click on the image below:

[TheNewAnon135246]

I suggest that people read the filing and ignore all the poorly written articles: https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=vIexA1b0spKOnK_PLUS_ZUGTJ3A==&system=prod

[Quickseller]

here is Bitfinexs response.

This doesn’t look very good for Bitfinex or tether. The value of the collateral that was securing the line of credit was valued at ~$120mm as of late yesterday after the news broke. This is on a $700mm draw on the line of credit.

There are appropriately $2.7 billion tethers outstanding. This means the amount of dollars backing tethers is approximately $0.74 per tether, plus another $0.044 per tether, or a total of about $0.80 per tether (rounding).

It isn’t unreasonable to suggest tether makes 3% per year on their bank deposits and charges 3% to withdraw for amounts over $10mm.

[suchmoon]

Please format the accusation with proper facts or move it where news reports belong.

[shasan]

Please format the accusation with proper facts or move it where news reports belong.

I am not sure, should I move it to reputation board?
They have no bitcointalk profile link so, scam accusation format cant work. Waiting for the suggestion. If it belongs to reputation then I will move.

[suchmoon]

I am not sure, should I move it to reputation board?
They have no bitcointalk profile link so, scam accusation format cant work. Waiting for the suggestion. If it belongs to reputation then I will move.

It doesn't need to have a profile link, just explain who scammed whom and how and for how much, etc.

Otherwise it's more of a Bitcoin Discussion (or Altcoin Discussion) topic.

[Bitcoin_Arena]

Shasan, I think this fits well int he Press board if you follow the right reporting format or even other boards like Trading discussion because I don't think it's a scam accusation.

[xtraelv]

No surprises here. Bitfinex’ed has been warning about Tether for years. Tether is a good idea but it is just too tempting to use it as an infinite line of credit. Lack of bank co-operation also made it risky.

[Lauda]

Step 1) Confiscate a company's funds.
Step 2) Sue the company for being insolvent.
Step 3) Profit?