Bitcoin SV Forum

Is Tether a so-called stablecoin? It might have been at some point in time, but it probably isn't anymore. About one year earlier the company managing Tether claimed USDT isn't backed 100 % by US Dollar, but only about 74 per cent so.

It's fun to read Tether's English Wikipedia page. 😏 There's so much shady stuff, if one is to believe what Wikipedia has published, like this:

"Research by John M. Griffin and Amin Shams in 2018 suggests that trading associated with increases in the amount of tether and associated trading at the Bitfinex exchange account for about half of the price increase in bitcoin in late 2017."

Then there's the Attorney General James of New York, United States, who is trying to figure out what's actually going on with Tether. The Attorney General is of the opinion that Tether and Bitfinex, the exchange, aren't doing things the right way. Here's a quote from one of NY Attorney General's press releases, from 25 April 2019:

"The filings explain how Bitfinex no longer has access to over $850 million dollars of co-mingled client and corporate funds that it handed over, without any written contract or assurance, to a Panamanian entity called 'Crypto Capital Corp.,' a loss Bitfinex never disclosed to investors. In order to fill the gap, executives of Bitfinex and Tether engaged in a series of conflicted corporate transactions whereby Bitfinex gave itself access to up to $900 million of Tether’s cash reserves, which Tether for years repeatedly told investors fully backed the tether virtual currency '1-to-1.'"

That quote is from this URL:
https://ag.ny.gov/press-release/2019/attorney-general-james-announces-court-order-again...