Cryptocurrency exchange Bitfinex and USDT Tether token, have both been subpoenaed by the U.S. Commodity Futures Trading Commission.
Apparently the CFTC has sent out queries to both companies. This comes out just a few days after news about the relationship between Friedman LLC and tether was dissolved.
Friedman LLC was the auditing firm that was in charge of ensuring USD was backing up every usdt that tether created. Tether is very closely knit with bitfinex which is based in the British Virgin Islands.
"We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests," the companies said in a statement to Bloomberg.
When reached out to make further comments or it back up their claim tether continues to show unwillingness to release any information. This to me is a huge red flag.
For all you that do not understand the economics of tether, tethers USDT token, kind of functions like a synthetic dollar of sorts. Generally (not always) Tether's value will be a one-to-one ratio with the US dollar.
Many critics argue that the token is not backed as it is said to be with the one-to-one ratio and that tether is acting similar to how the FED acts and Prints money into Oblivion.
When investors want to move their money out of crypto into a quote on quote "safe Zone" Tether has been place to go. Being quite a bit easier to go into tether versus transferring completely back out of cryptocurrency into you you're native currency.
And in the last few weeks it has been used to lift the price of bitcoin, generally in parallel with times of Market weakness.
Personally I see tether as a waste of time and money. I use crypto as a way to step away from fake inflation and Federal style money printing.
Also if something has no ability to go up it must go down.
If the US dollar crashes usdt is garbage.
If usdt is lying on their books and creating imaginary tokens usdt is garbage.
If usdt is usdt it is garbage.
Also for all of you that think you're evading taxes by using tether instead of taking it out to your native currency you're wrong. You are taxed identically when putting your crypto into tether as if you just removed your crypto and put it back into Fiat.
With the cryptocurrency market cap sitting above 520 billion and tether holding just over 2.2 billion it would not be the worst thing in the world to dissolve tether before it gets too big and has a real effect on the market.
And comparison to the long View of cryptocurrencies it is time we start cleaning and remove all the junk and clutter. We see this too many times in cryptocurrency where people come along just purely to make money.
They do not care whether or not they're creating Tech that will truly change the world. Let's get rid of the pump and dumps let's clean up this.
crypto will be huge!
And please no more bit connect talk.