US Tether in the courts

[paxmao]

NY courts apparently have come down on Bitfinex and UST. The main claim is that UST without a real USD backup has been used to support and acquire massive amounts of bitcoins during some of the larger dips at least. My take: just don´t tether stuff.

[Wilhelm]

Crypto shouldn’t mess with regulated fiat....

[Taskford]

NY courts apparently have come down on Bitfinex and UST. The main claim is that UST without a real USD backup has been used to support and acquire massive amounts of bitcoins during some of the larger dips at least. My take: just don´t tether stuff.

For holding it on long term to avoid some volatility stuffs maybe I will not do it but for trading for some quite while and to earn with it maybe I will buy use tether for that reasons. But if there's something big which creates huge bad effect to tether well maybe I will step out on using this but for now while this one is in good shape I will not avoid tether.

[LUCKMCFLY]

A court, government, bank will always give them an allergy when buying Bitcoin or trading Bitcoin, despite the Bitfinex problem, what they cannot prove is that all the FIAT money they have printed, and even go through the filter The FED has generated high inflation, if it were backuped, it would not create inflation. Their biggest fear is that the dollar-based economy will collapse, which is ultimately being given as a word against each other.

[teosanru]

Didn't Bitfinex won the case and court admitted that there was no fault on the end of Bitfinex and there actually exists the amount of tether there is generated by the exchange. However the case was settled outside coirt. Here is the link that I have found for this news: https://www.coindesk.com/ny-ags-850m-probe-of-bitfinex-tether-ends-in-an-18-5m-settlement

[sunsilk]

My take: just don´t tether stuff.

That's the recent thing that why people shouldn't use Tether. Other than that, Tether is also known for freezing accounts, you'll never know if your funds will be accused that came from fraud transactions without any defense.

For holding it on long term to avoid some volatility stuffs maybe I will not do it but for trading for some quite while and to earn with it maybe I will buy use tether for that reasons. But if there's something big which creates huge bad effect to tether well maybe I will step out on using this but for now while this one is in good shape I will not avoid tether.

If you're fine doing it and you know what could possibly go wrong with Tether, that's up to your choice but there are other stable coins that could replace that for trading purposes and for the sake of avoiding or minimizing volatility.

[snipie]

Didn't Bitfinex won the case and court admitted that there was no fault on the end of Bitfinex and there actually exists the amount of tether there is generated by the exchange. However the case was settled outside coirt. Here is the link that I have found for this news: https://www.coindesk.com/ny-ags-850m-probe-of-bitfinex-tether-ends-in-an-18-5m-settlement

Yeah I read another article about that and I can confirm that this case was settled and it is now from the past. Using tether between sisters companies of Bitfinex made them allergic but paying a fine made everything just fine. Not sure what's the source of OP.

[proudhon]

Tether is a safer investment than bitcoin. Scientists, like myself, have confirmed this.

[pooya87]

to support and acquire massive amounts of bitcoins during some of the larger dips at least.

That's nonsense. Court doesn't give a shit about what Tether is being used for, the only thing they care about is to make sure no centralized body is printing money. You can always peg something 1:1 with the already printed dollar though.
The issue with Tether has always been that they haven't been able to convince the authorities that it is backed 1:1.

As for its usage, it is used in the altcoin market for the most part not bitcoin. So your statement here is wrong on another level too.

[el kaka22]

Basically they just took our money, dropped the price of bitcoin, collected more bitcoin at the bottom using our own money, failed to back up usdt to usd and they got away with it using only 18 million dollars. It is obvious that they were wrong and mistaken the moment they paid a fine, because if you are paying 18 million dollars as a punishment, you must have done something very wrong.

Even the idea that tether said they have 1 usdt 1 usd backing at all times, that is really the whole problem, they didn't and they ended up lying to people and there is no turning back from that. I feel like we are in a situation where anyone who owns USDT should want their USD back, if they could just sell their USDT and get bitcoin and if enough people do that, eventually there will be a situation where USDT will drop under 1 dollar because everyone is looking to sell it, and Tether will be forced to either buy them back or they would have to accept that they do not have the backing.

[Wilhelm]

Tether is a safer investment than bitcoin. Scientists, like myself, have confirmed this.

They should call you proofless
 

[fullhdpixel]

to support and acquire massive amounts of bitcoins during some of the larger dips at least.

That's nonsense. Court doesn't give a shit about what Tether is being used for, the only thing they care about is to make sure no centralized body is printing money. You can always peg something 1:1 with the already printed dollar though.
The issue with Tether has always been that they haven't been able to convince the authorities that it is backed 1:1.

As for its usage, it is used in the altcoin market for the most part not bitcoin. So your statement here is wrong on another level too.

I do agree that they failed to back it up 1 to 1 and that is the "main" problem that they had but the reality is that it is not the only thing that they have used it for so that could create a problem. For example* Buying bitcoin at the bottom. Now you may think that it is a smart decision, no matter how much money they have, they could simply buy bitcoin at the bottom and sell at the top and make a lot of money right?

Well, what if they buy and it drops even more? At that point they are really supporting at 1 to 1 ratio because they have lost money. Basically courts do care what they do with the money if the end result is not being able to back it 1 to 1. Obviously it is something that always connects to 1 to 1 but how they failed is important too.