Re:Tether starting to lose its peg too, after Terra did
by FireBeyond on Thursday May 12, 2022 @03:07PM
(#31358794)
> and honestly I can't see how the possibly could have adequate reserves
Not even close, even now. And the earlier stuff was almost insulting. Like the claim in 2019 that they were depositing $3.5 BILLION, per WEEK, into a bank, a deposit rate that would exceed AT&T, Samsung, Alphabet (Google).
Hah. No. The bank "deputy CEO" (who was 33) in an interview noted that the Bahamas had two banking licenses. But couldn't name them. And in any case, wasn't sure which his bank had, but he knew they had one of them. "And possibly the other".
I believe that everyone should do their own research etc but there's a reason there are laws against fraud. There are a lot of people who would get taken advantage of by the unscrupulous if we just decided that it's all about personal responsibility. Yes people should not have the expectation that they will get rich quick but there is also no reason to allow them to be blatantly ripped off either.
If tether haven't maintained the level of reserves they need to maintain the peg (and honestly I can't see how the possibly could have adequate reserves) then it seems a pretty straightforward case of fraud.