Thread by @andr3w321

1/ Read the NYAG document not the Tether press release. "Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal." 13% backed LOL

https://twitter.com/BennettTomlin/status/1364206679810854914

2/ "49. At no time did Bitfinex or Tether disclose to the market that Tether had transferred at least $625 million to Bitfinex, or that Bitfinex had experienced critical liquidity issues because of loss of approximately $850 million to Crypto Capital."

Tether was nearly bankrupt

3/ "Publication of Tether’s Reserves: On at least a quarterly basis for a period of two (2) years following the effective date of this Settlement Agreement, Tether will publish the categories of assets backing tether (e.g., cash, loans, securities, etc.)...

4/ "...specifying the percentages of each such category" When it comes out that 95% of Tether reserves are random cryptocurrencies let's see what happens.

5/ It's been my belief for a long time that a BTC market downturn will break Tether not law enforcement.

Speculators try to realize BTC gains and sell for USD -> Tether sells BTC to generate USD -> BTC drops more -> Downward spiral

6/ I feel like there is a lot of mis-understanding about how ponzi schemes work. All ponzi schemes are partially backed. Even Bernie Madoff was ~21% backed at the end ($14B was recovered on a claimed $65B) It was the 2008 GFC that broke Bernie.

7/ I also feel like people really don't understand how Tether printing -> Buy BTC = Tether backed by BTC is a problem. It artificially, temporarily, increases BTC price and allows Tether to claim they are "backed by reserves." Nowhere in this doc does it prove Tether has $34B USD