Comment Comment by panarky Lots of smart people have been claiming since 2015 that Tether was a ponzi fraud, that it didn't really have dollars to back the Tethers.But in fact Tether did have the money, at a real bank, and at this point that bank was Deltec Bank & Trust Ltd. in the Bahamas.Amazing, Tether actually was fully backed by dollars in an actual bank!But then Bitfinex took $625k of Tether reserves to make up for a separate fraud or government asset seizure.Bitfinex took $625 million in real money at a real bank from Tether, and in exchange gave Tether back $625 million in fake money at a fake bank.The real mystery to me is why rational traders continue to buy Tether at $0.9926, less than 1% from parity with USD. Why wouldn't people sell? parent panarky 7 years ago
But in fact Tether did have the money, at a real bank, and at this point that bank was Deltec Bank & Trust Ltd. in the Bahamas.
Amazing, Tether actually was fully backed by dollars in an actual bank!
But then Bitfinex took $625k of Tether reserves to make up for a separate fraud or government asset seizure.
Bitfinex took $625 million in real money at a real bank from Tether, and in exchange gave Tether back $625 million in fake money at a fake bank.
The real mystery to me is why rational traders continue to buy Tether at $0.9926, less than 1% from parity with USD. Why wouldn't people sell?