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A comment on U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether. Parent comment

Re:U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether by ThrustVectoring on Tuesday January 30, 2018 @04:36PM (#16269275)
Fraud, for accepting "USD" deposits and hiding the fact that they silently convert your balance to USDT.

And they don't have to win the lawsuit, they just need to not get it dismissed outright and scare others into leaving the exchange.

[ Parent | on HN ]
Re:U.S. Regulators to Subpoena Crypto Exchange Bitfinex, Tether by dragonwriter on Tuesday January 30, 2018 @04:40PM (#16269304)
> Fraud, for accepting "USD" deposits and hiding the fact that they silently convert your balance to USDT.

Other than Bitfinex (with he comingling issue mentioned upthread), I understood the main use case for USDT on exchanges is to avoid even touching USD transactions in either direction; for exchanges doing this, they wouldn't be at risk here.

> And they don't have to win the lawsuit, they just need to not get it dismissed outright

Right, but I'm not seeing where you get a colorable cause of action that avoids that for a typical USDT-supporting exchange from a USDT value collapse.

[ Parent | on HN ]