Thread by @patio11

The $850 million was covered with an emergency equity injection (organized among large Tether customers), but I think industry observers have not yet cottoned onto the practical equivalency of that seizure and a fine for money laundering.

https://twitter.com/Bitfinexed/status/1449894557966032898

Tether has held out hope, including when raising the equity (the LEO token), that the money seized from Crypto Capital Corp's accounts will be restored to them after they demonstrate that they are the beneficial owners. Many people seem to believe this is the natural outcome.

I think the natural outcome is closer to "Oh if you are indicted by multiple governments for money laundering including for Columbian cartels then whichever jurisdiction the money was seized in will probably keep it and maybe, maybe, maybe we investigating governments divvy it."

"But you, no, you're not getting it back. Play stupid games, win stupid prizes. If you had anything approaching clean hands here, like say the Mt. Gox bankruptcy administrator vis their US money laundering subsidiary, maybe we would offer 50 cents on the dollar for a release."

"But we don't even need a release from you, because you don't even have a claim. There wasn't even a contract between you and your money launderer. Because you were laundering. Which we take exception to in the most stringent possible terms."

And so there is this superposition of Tether's "We didn't do anything wrong and the investigation is over!" and the governments'/financial system's read "Oh the org fined +/- a billion dollars for money laundering where the criminal fireworks haven't even kicked off yet."

Speaking of clean hands: Tether is the central bank, clearing bank, investment bank, commercial bank, counterparty, etc etc, of *the entire ecosystem.*

There's a bet being made that there is safety in numbers there. And, well, that is certainly a bet.