Tether loaned USDT to investors and illegally traded in New York, says NYAG

Tether has been an openly fraudulent enterprise since the beginning. Pretty much anyone with any experience in financial securities and even passing knowledge of crypto was raising red flags, including on this website. Never wanna blame the victim, but kinda feel like anyone with any due diligence here was just hoping for casino rallies and didn't believe what they were being sold.

Curious what HN thinks about Maker DAO. Dai is pegged to the dollar by a decentralized scheme where people loan/borrow an underlying asset. Seems to be floating pretty close to $1 and I wonder if it will replace USDT...

oh man, I'm in New York and I've got Tethers. Time to pull the eject cord (on both)

I am curious. Has anyone actually tried to redeem a tether?<p><a href="https:&#x2F;&#x2F;tether.to&#x2F;fees&#x2F;" rel="nofollow">https:&#x2F;&#x2F;tether.to&#x2F;fees&#x2F;</a><p>It sure seems like they would like to just have people trade them on an exchange.

Tether business model is dependent on banks.<p>Banks are always a huge risk when you deal with crypto. They can freeze your funds anytime.<p>You need to be on regulators side or they&#x27;ll attack you on the bank accounts.<p>That means full compliance with KYC&#x2F;AML and so on.

This would explain the mini Bitcoin rally

Quick - someone call the SEC!

I know there are a lot of crypto skeptics here, but if you believe in Bitcoin more than Tether at least then you should buy Bitcoin...if Tether does indeed fail Bitcoin will almost certainly spike past 2017 highs.

&quot;Loaned USDT&quot; in this context just means created tether and gave it before the wire transfers went through (but presumably these pending wire transfers count as assets, especially considering they can blacklist tokens at will). Not exactly damning evidence.<p>Also it seems like &quot;illegally traded&quot; just means that NY companies set up foreign shell companies to skirt NY regulations? I don&#x27;t see how this is iFinex&#x27;s fault either tbh

I still don&#x27;t see how the State of New York can claim jurisdiction. I mean, it can &quot;claim it&quot; but good luck getting Bitfinex and Tether to comply.

USDT has a strong following in APAC countries. Also for some crypto users part of its allure is that it’s vaguely sketchy - it means they are less likely to have their funds blacklisted, a feature which Tether maintains the ability to do but has never enforced as far as I’m aware.<p>If you are getting into the space now USDC is an audited stablecoin backed by Coinbase and Circle which has the second highest issuance after Tether. Most likely you would prefer USDC over tether.<p><a href="https:&#x2F;&#x2F;www.circle.com&#x2F;en&#x2F;usdc" rel="nofollow">https:&#x2F;&#x2F;www.circle.com&#x2F;en&#x2F;usdc</a>