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Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @08:02PM (#31321571)
Because it being backed by actual USD also means it's subject to the reach of the US federal government. That means your funds can potentially be arbitrarily frozen/seized.
Re:UST Stablecoin Loses Dollar Peg by Johnny555 on Monday May 09, 2022 @08:34PM (#31321835)
If your biggest reason to use risky crypto is because the US Government might seize your funds, that's probably a reason to not do whatever you're doing (if you live in the USA) since the US Goverment can probably just seize you for the same reason.
Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @08:37PM (#31321862)
1. not everyone lives in the US

2. "seize you" is much harder to do (ie. court conviction) than freezing a bank/stablecoin account

Re:UST Stablecoin Loses Dollar Peg by Johnny555 on Monday May 09, 2022 @08:44PM (#31321908)
Then don't keep your assets in banks linked to the USA so they can't just seize your assets on a whim, they actually have to prove that the money should be seized.

What activities can a non-american do that would result in seizure of their funds, but wouldn't also subject them to arrest? (other than accruing IRS debt)

Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @09:08PM (#31322106)
> Then don't keep your assets in banks linked to the USA so they can't just seize your assets on a whim, they actually have to prove that the money should be seized.

If your net worth is high enough to afford such an arrangement, by all means do that.

> What activities can a non-american do that would result in seizure of their funds, but wouldn't also subject them to arrest? (other than accruing IRS debt)

activities that generate enough suspicion for the authorities to target you (ie. civil forfeiture) but for which the authorities don't have enough evidence to convict you.

Re:UST Stablecoin Loses Dollar Peg by Johnny555 on Monday May 09, 2022 @09:14PM (#31322161)
If your net worth is high enough to afford such an arrangement, by all means do that.

How much net worth do you need to find a bank that's doesn't have a branch or other offices in the USA which would require them to obey USA seizure requests? Can't you just look for a small local bank that's not part of an iternational bank with offices in the USA?

activities that generate enough suspicion for the authorities to target you (ie. civil forfeiture) but for which the authorities don't have enough evidence to convict you.

I meant specifically, not general hand waving "anything that makes authorities suspicious".

I just want to know what the legitimate use case is for using crypocurrency to shield your funds from the USA that couldn't also be done at a traditional bank.

Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @09:19PM (#31322208)
>How much net worth do you need to find a bank that's doesn't have a branch or other offices in the USA which would require them to obey USA seizure requests? Can't you just look for a small local bank that's not part of an iternational bank with offices in the USA?

It was unclear whether you were talking about american or foreigner in that context. For a foreigner, you'd have to contend with local banks that are subject to requests from local police.

>I meant specifically, not general hand waving "anything that makes authorities suspicious".

literally any of the civil forfeiture horror stores that show up on HN from time to time.

Re:UST Stablecoin Loses Dollar Peg by Johnny555 on Monday May 09, 2022 @09:29PM (#31322287)
It was unclear whether you were talking about american or foreigner in that context. For a foreigner, you'd have to contend with local banks that are subject to requests from local police.

You said "not everyone lives in the USA", so I was speaking of non-americans, keeping their money out of the reach of american authorities. But for the German citizen keeping money in a German bank, what specific activity would lead his money to being seized that would not also subject himself to arrest and prosecution.

literally any of the civil forfeiture horror stores that show up on HN from time to time.

I've seen lots of cases reported where cash is seized, but what ones had their bank accounts seized without having committed a crime that would lead to prosecution?

Again, I'm just asking for a specific example of why someone would use cryptocurrency because they are doing some legitimate activity that would lead to their bank account being seized, but wouldn't also open themselves up to prosecution.

Re:UST Stablecoin Loses Dollar Peg by quickthrower2 on Tuesday May 10, 2022 @04:06AM (#31324679)
Transfer $10k or whatever is deemed to trigger AML detection at the bank? Probably worse is accepting 1000 x $10 like people who are … running a business.

Stories of paypal cancelling a business because they locked up all the revenue were quite common when I was interested in that kind of stuff a few years ago.

Re:UST Stablecoin Loses Dollar Peg by netheril96 on Tuesday May 10, 2022 @06:45AM (#31325524)
Almost all banks in the developed countries work with the USA.

Banks in the developing countries may be less trustful than crypto currency.

Re:UST Stablecoin Loses Dollar Peg by 1270018080 on Monday May 09, 2022 @08:17PM (#31321683)
It all comes back to the idea that crypto is only a novel solution for scams and illicit markets.
Re:UST Stablecoin Loses Dollar Peg by jjtheblunt on Monday May 09, 2022 @08:18PM (#31321696)
Is that not the case for blockchains because the wallet ids do not divulge identities?
Re:UST Stablecoin Loses Dollar Peg by pcthrowaway on Monday May 09, 2022 @08:30PM (#31321810)
Two points:

- Government agencies can ascertain the identities of virtually all accounts with Chainalysis, following the money to the fiat entry/exit points.

- Even with a theoretical anonymous account, with centralized stablecoins like USDC or USDT, the balance held by that account can be frozen because the issuers of those tokens have crafted their token contracts such that they maintain the ability to mark certain addresses as incapable of transfer

Re:UST Stablecoin Loses Dollar Peg by scyclow on Monday May 09, 2022 @11:58PM (#31323291)
Took 17 responses, but I think your second point answers my question. Thank you.
Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @08:32PM (#31321828)
>wallet ids do not divulge identities

Theoretically yes, but in practice no. A quick search turns up https://www.theblockcrypto.com/post/129133/tether-freezes-ov... for instance

Re:UST Stablecoin Loses Dollar Peg by worik on Monday May 09, 2022 @08:42PM (#31321900)
Not the cash in the shoebox under my bed
Re:UST Stablecoin Loses Dollar Peg by gruez on Monday May 09, 2022 @08:55PM (#31322001)
"cash in the shoebox under my bed" can't be sent over the internet.
Re:UST Stablecoin Loses Dollar Peg by worik on Monday May 09, 2022 @09:20PM (#31322214)
That is a good thing
Re:UST Stablecoin Loses Dollar Peg by therealcamino on Tuesday May 10, 2022 @07:52AM (#31325961)
For just a second this exchange made me think what an insane world we'd live in if you'd always been able to spend cash in dollars without the physical bills, but could use the serial numbers on them to spend them. Imagine all the scams like the Target gift card phone calls where they try to get you to send photos of the bills.