A response to Tether releasing their prior audits.

Responses to Tether’s recent claims

Source (Archive)
  1. Tethers Website & Legal Terms of Service.
  2. Tethers own Legal counsel.
Source (Archive)
  1. What jurisdiction is the peoples money in?
  2. What banks is the peoples money in?
  3. Is the bank account under the proper name, “Tether Limited”, or is it under a shell corporation which legally has no affiliation to “Tether Limited”? This is the most important question.
Source (Archive)
  1. There has been no proof of this, and people have come forward to me telling me they could only get out by either buying Bitcoin, or selling to other users on Kraken. I have screenshots of peoples support tickets confirming this.
  2. While they claim millions of dollars flow in, and out of Tether, Tethers in circulation historically has never gone down, indicating that they have never actually redeemed a large Tether holder.
Source (Archive)

You did.

Legal terms of service means things. A legal terms of service is like computer code.


How to make a Good Faith effort to back Tethers right now

The Kraken exchange is the only exchange which lists a USD/USDT Tether pair. The liquidity on this pair is a joke.

Tether circulation at the time of this post.
  1. Open an account at Kraken under “Tether Limited”
  2. Transfer 10% of Tether USD to Kraken.
  3. Place a limit buy order at $1 with all 10% of the USD on Kraken to Buy Tethers.
  4. As people sell Tethers, place limit ASK orders at $1.00 to keep the currency peg in check.
  5. If reserves on Kraken fall below 5%, replenish the USD balance.
  6. Bonus! Totally WTF-PWNED-REKT-LOL me if I really am trying to short Tether on Kraken.
  7. The Tethers transparency page can be updated to query Krakens orderbook for Tether. Tethers sitting on an ASK order can be considered “Authorized but not issued”, the USD backing the buy order can be considered a Tether asset.

With all of that said…

I find the claim that “institutions are buying Tethers” extremely suspicious.

  1. Not resolved their banking problems.
  2. The legal terms of Tethers being a total abomination.
  3. The frivolous lawsuit that was filed by Bitfinex and Tether against one of the largest banks in the world, and they knew it was frivolous when they filed it.
  4. The fact that Bitfinex confiscated 36% of everyone's US Dollars when they ‘got hacked’, basically bailing out Bitcoin holders with people who were not speculating on Bitcoin… is very suspect to me. This was absolutely the wrong move to make.
  5. The failure to provide a Bitfinex audit after the hack, both the security audit of how they got hacked, and the financial audit they never completed. This should have been the number one priority after the hack.
  6. The fact that they have been scrubbing information off the Internet and Website of who they are, and the amount of times I have been lied to by BFX employees telling me that Bitfinex doesn’t own Tether when that is provably false.



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Blog for @Bitfinexed on Twitter. Exposing possible fraud by largest Bitcoin exchange, Bitfinex/Tether