🪙 Tether is a fraud and the peg breaks

“But I will say that my fraud of the moment, the one that's making my Spidey sense go crazy is Tether. USDT. These guys are, I mean, this feels like it is going to be a 60 billion. ... And then over time, we find out maybe they don't have a dollar in their bank account for each one. The New York Attorney General finds them $18 million says you can't work with anybody in New York. They say we're not a fraud. And I'm like, well, what about the Attorney General who said you were a fucking fraud?”

“We should get all the fancy all in pod. We're going to declare a certain time and date where and we encourage everyone who's in Tether to pull out a Tether to stress the system and see what happens.”

“Bitfinex and Tether were the same company. That's why they both got the fines at the same time. ... So I think this is the beginning of the end, not the end of the beginning.”

“My guess is that Tether is solvent. I don't think it lacks solvency.”

“And the fine was 42 million, which is like, who fucking cares 42 million? And it was between them and another firm. So either the CFTC completely got the fine wrong and they missed a zero or two zeros, or this was not nearly as big as you thought it was.”

“They've been banned in New York. They've had regulatory action in Canada. People are concerned about their attestations or lack of clarity on their commercial paper.”

“Well, we're not participating directly, but we support as many assets as people want to use. And that is one of the ones that we've supported people to deposit and withdraw in Coinbase. ... I'm not an expert on Tether. My understanding is that there have been some investigations and enforcement actions which have required them to go in there and clean up some things. And our digital asset listing group kind of looked at a lot of this in depth and made that judgment call that where they were and where they are now.”