RE: Why Tether’s latest statement about its auditor is complete BS
So either they are lying through their teeth and shady as frack.
Or they actually don't have a bank account or even a few bank accounts with a big pile of USD and EUR to back their tether tokens - instead they have a whole bunch of sketchy promisary notes or something equally as intangible. And as you point out an audit would also have to try and establish that any simple deposits they have on hand aren't actually just money secured on loans. I'm pretty sure a corporation with the potential to mint billions in money could do all kinds of dodgy deals to magic $2B out of nowhere.
Rember those toxic mortgage-backed financial assets no one seemed to know where actually worse than junk and caused the 2008 crash... So when push comes to shove who knows if $2B in a bank account is really $2B in a bank account they can legally draw on, and if they did would they risk losing their balls to some shady as frack Russian maffia?
@o1o1o1o If the banks have to have only 10% in reserves and you don't panic, why do you need all the $2B in bank accounts? This is huge pile of money, you can even have them in one bank or one account, you have to split like million times, to reduce risk, because as you know – banks may go bankrupt as well. It's not easy and safe to keep that amount of money
2 Billion is nothing to Chase, Deutche, Sumitomo, Nakamora, Bank of England, Tiaa/Cref...and many others.
My father and his friends were CFOs and CEOs for private held Family fortunes that were in the 10 and 11 digits ranges, money that makes Trump look like the Chump he is.
And they deal not hundreds of Banks...Usually its 3 or 4....
For Instance Sterling National in NY only had 2 branches till 20 years ago, now they have 5 maybe.
But they have vaults the size of football field to hold the financial instruments.....
Even when the Twin Towers Collapsed they did not destroy Chases vaults 500ft below. The ones the size of 5 football fields.
Most people have no concept of how much money these big banks have....
And yes they are to Big to fail!
Oh of course they have banks (a lot of people know them and get regualry dividens) but that Tether situation was more or less founded when Wells Fargo (the monopolist on international remitance) was flagging (plus block) cryptocurrency transaction not only on Finex - no exchange was able to receive FIAT overnight from the community.
The logical idea was to decentralize bank accounts that they can not filter transactions easy.... of course not perfect but it is not crypto broken - it is the crappy banking system in America what is broken.
What I always find interesting that people from US think they are the only of the world when nobody give a shit on whole planet in meantime - lol.
You are actually on point about this issue
Hit the nail on the head - it should be an easy process to confirm... but if it's taking long, that's not because of the auditor's incompetence or whatever, it's because they need to do extra work to gain comfort over the numbers.
Could be that the $2B is not actually held in cash, or not in accounts controlled by Tether.. Or that they have many outstanding liabilities, etc.