If you think through what that means... given that it appears in the FTX list of assets it appears that Tether had an open line of credit where they could borrow money from FTX?
1. What assets were they borrowing? 2. Why does a stablecoin issuer need to borrow anything?
Jul 13 • 7 tweets • 3 min read
🧵1/Ω. Some exegesis of the (extremely weird and confusing for everyone on both sides) $XRP / #Ripple ruling: storage.courtlistener.com/recap/gov.usco…
🧵2/Ω. Ripple tried to say there should be an "essential ingredients" test instead of or in addition to the Howey test and the court said "gtfo".
Jul 10 • 6 tweets • 2 min read
🚨 how do you have a "temporary shortage" of your users' assets if you were just holding them for custody?
answer: you don't.
so #BinanceUS must have been playing games with its customers' crypto.
- both those pieces of paper were *immediately* retracted by the auditors ark-invest.com/big-ideas-2023…
🧵 this is #CryptoCom's "proof of reserves" that Wacky Cathie's ARK website claims was done in 2022 👇. it existed in public for 5 days before the auditor Mazars was like "just kidding!" and deleted that entire part of the website. $ARKK $ARKW $ARKF $ARKG
"While our client cash balances declined modestly due to seasonality and cash sorting in February, over the past two weeks, we have attracted over $1.3 billion in additional bank deposits, including an increase in uninsured deposits" $SF
🧵1/Ω #Tether's claims of $1.5 bn profit in 2023-Q1 means they must be investment geniuses.
Assume that every asset category is as they claim it was on 2023-03-31: $68.8 bn investments, $480 mm cash). If the cash equivs are 100% short dated t-bils their income would be $1.15 bn
This is even if you assume they rushed out and bought $14 bn worth of treasuries on the first day of the quarter to get them from $39bn to $53bn, which they didn't. They didn't even have $68bn TOTAL at the start of the quarter.
May 18 • 4 tweets • 3 min read
Can someone please tell me why #Tether is "doubling down its focus on limiting its reliance on pure bank deposits as a source of liquidity"?
Because that sounds like a thing you do when you're having banking issues... coinmarketcap.com/community/arti…
🧵 Given that it has long been rumored that Tether is somehow managing to count Circle's USDC reserves as its own reserves by some kind of transitive property I found it very striking that Tether's announcement came right after Circle's & w/same language. coindesk.com/business/2023/…
May 17 • 21 tweets • 13 min read
What #Tether Has Said Lately vs. Arithmetic: The Thread
let's start with the fact that #Tether announced a $1.48 billion "profit" a few days ago. decrypt.co/139604/tether-…
Let's just conveniently ignore the fact that the auditor who provides #Tether's "attestations" that are in no way anything like an audit has never mentioned "profits".
(Also read the rest of @intel_jakal's 🧵 as they have the numbers.)
running a search for [@]Blockchain AKA "Blockchain.com" AKA "one of the oldest and theoretically more reputable companies in the European blockchain space" right now and reading the recent tweets is a bit of a heartbreaking exercise...
❓ I'm just going to throw out there that I find the fact that $COIN somehow registered *exactly* the same overall trading volume for 2022-Q4 and 2023-Q1 is kind of... unsettling. almost as if someone planned it that way. or washed it that way, as the case may be...
i mean coincidences like this definitely do happen, so this isn't necessarily an accusation... but seriously these were two extremely different quarters with a LOT going on (FTX, USDC de-peg, Binance kicked off the dollar system, etc.) And there's no movement?
May 4 • 9 tweets • 4 min read
$COIN Q1 unaudited earnings takeaways:
➤ thank god for jerome powell
➤ retail customers getting fleeced
➤ shitcoins are king
I'll say it again: shitcoins are king.
May 4 • 10 tweets • 5 min read
$CUBI is now one of the most exposed banks, if not the single most crypto exposed bank, in the United States. They're also relying on brokered deposits to stay solvent, meaning they have to pay the highest interest rate of any bank or risk losing their deposits.
$CUBI is running the same game as $SBNY. Not even just the same game - they're literally running the same software. #TassatPay is just rebranded #SigNET. It's the kind of platform money launderers have wet dreams about.