Tether Fined $41M for Lying About Reserves

Re:Tether Fined $41M for Lying About Reserves by KarlKemp on Friday October 15, 2021 @11:03PM (#28885208)

No. "Pump[ing]" by buying something is entirely legal. And the price should come down just as much when you are trying to cash in, so the mechanism doesn't really work, or anyone with enough money could just do it repeatedly using whatever traded asset they want.

"Pump and dump" refers to promoting some investment by other means, usually spreading some false news.

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Re:Tether Fined $41M for Lying About Reserves by TomSwirly on Saturday October 16, 2021 @10:02AM (#28887952)

> "Pump[ing]" by buying something is entirely legal.

I beg to differ. The Securities and Exchanges Act of 1934 criminalizes all sorts of things that are deemed market manipulation, and inflating the price of a security by false trading, i.e. selling it to yourself or a conspirator, is one of the very things it was created to prohibit.

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Re:Tether Fined $41M for Lying About Reserves by tehlike on Friday October 15, 2021 @11:27PM (#28885306)

It can be still pump and dump because rising price induces fomo.

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