Yo guys, XanPharaoh here.
As promised, HOLDING TETHER IS A BAD IDEA PART II is here. I know that you guys have been waiting and I'm sorry. But trust me, what you are about to read is worth the wait.
Let me just start by saying that I am not a qualified crypto expert, so nothing I share here constitutes financial advice. As my profile bio suggests, I'm simply a crypto enthusiasts with strong opinions backed by facts for you to freely refute.
Now that that is finally out of the way, let's get started.
It turns out that there is more to the story than meets the eye. I'll start by pointing out the obvious elephant in the room. For as long as Tether has been in existence, there has never been an official audit. So, let's get this straight ... Since Tether was founded in July 2014, it has never been audited...? The largest liquidity provider in the crypto space, with a current market cap of more than $69 Billion has never been audited? So much for transparency lol.
That's shady to say the least, but I know that some of you guys read that and is still not convinced that 'hodling' is a BAD idea.
BUT WAIT, THERE'S MORE.
Ever heard of Bitfinex?
I didn't even know they existed until I saw that meme.gif in Part I. See Part I for more info.
Now Bitfinex is company with a shady reputation. It is a subsidiary company of iFinex... Just give me a moment to explain why this is important to mention. Bitfinex was in a bit of legal trouble for offloading more than $1B of their clients money to an offshore payment processing company known as Crypto Capital . Issue is that Crypto Capital was into some shady s#it too. Turns out, the INTERNATIONAL POPO froze assets to the tune of about $850M because they were suspected of having ties to some international criminal syndicate.The Attorney General further found that there were instances where Tether held no reserves to back the pegging of the coin.
YOU HEARD ME RIGHT.
And since then, there has been some crazy discoveries. Since 2019, insiders of Crypto Capital CORP has been arrested and the founder now sits in a cell and is patiently waiting for his slice of justice pie.
Earlier on, I mentioned that Bitfinex is a subsidiary of iFinex. Funny enough, so is Tether! And it has been reported that Bitfinex took $850 million from Tether as collateral to hide their Ls. The New York attorney general’s office has been investigating Tether and Bitfinex long and hard, and this finally paid off when Tether and Bitfinex agreed that they would d pay a fine of almost $ 19M to settle a legal dispute that has been ongoing since April 2019.
As part of this settle agreement, both Bitfinex and Tether will not be able to have any trading activity over in New York. So, its great to see that they are being reprimanded for conducting business in the manner that they are.
There is something that was said by the Letitia James that basically summarises this whole Tether/Bitfinex scam operation. In an interview with CNBC she claimed that, “[t]hese companies obscure the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system”. In my opinion, she couldn’t have said that any better.
I’m all for decentralisation and #Down_With_Wall_Street, but if there is no regulation, these coin projects are going to keep getting involved in shady business dealings at your risk.
Yup, s#it just got real! And trust me, in the next segment it’s about to get much more real. For the next segment I will be taking a deeper dive into the team of executives running Tether/Bitfinex and, all I can say it that you are in for quite a treat.
So, if you made it this far. THANK YOU!
If you want me to continue with this series, hit the like. And feel free to share your thoughts and opinions down in the comments. I'm looking forward to seeing what you guys think about the whole situation.
I will be dropping Part III sometime in the week. So, look out for that.
I appreciate the support from all of you.