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A comment on FTX’s financial black hole leaves Binance balking at rescue plan. Parent comment

Re:FTX’s financial black hole leaves Binance balking at resc... by alasdair_ on Wednesday November 09, 2022 @02:05PM (#33536369)
USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value.

And note that this was true in May - global markets are WAY down since then.

Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.

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Re:FTX’s financial black hole leaves Binance balking at resc... by mumbisChungo on Wednesday November 09, 2022 @02:21PM (#33536540)
Yes, it looks like 12% of their assets are in commercial paper.

I'm not claiming to be an omniscient source of truth, but USDT is supposed to be backed 1:1, is audited regularly, and has survived extreme volatility events and bank runs for the better part of a decade.

Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.

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Re:FTX’s financial black hole leaves Binance balking at resc... by belltaco on Wednesday November 09, 2022 @02:48PM (#33536897)
USDT wasn't even audited once, forget about regularly.

https://blockworks.co/tether-pushes-back-timeline-on-audit-r...

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Re:FTX’s financial black hole leaves Binance balking at resc... by mumbisChungo on Wednesday November 09, 2022 @03:10PM (#33537160)
Maybe I'm misunderstanding what this document is

https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

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Re:FTX’s financial black hole leaves Binance balking at resc... by belltaco on Wednesday November 09, 2022 @04:12PM (#33537916)
That's not an audit, it's an attestation. The article says:

>The company does release quarterly attestations, separate from a thorough audit, as required by a 2021 legal settlement with the New York Attorney General’s Office. Following the hiring of its new accounting firm, BDO Italia, earlier this month, Tether said it intends to release them on a monthly basis, beginning early next year.

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