By now many of you within the crypto community have heard of the $30 million Tether hack that occurred two days ago. With most, as evident within several forums, the official narrative being pumped out does not digest easily. Something’s not right.
The initial thought that popped in my head as I began digging through media sources was why had the hacker not converted the funds the moment after the hack?
What I and many have uncovered is a connection between Tether and Bitfinex that resembles the story of Mt. Gox.
Quick Snapshot of Tether
Tether was originally known as Realcoin and was started by a Chinese company back in 2015. Each tether coin represents either the US dollar or the Euro – soon to also be the Japanese Yen. These are the same top 3 currencies that experts continuously predict will hyper inflate, initiating a global financial meltdown. This is a how a third party of Chinese origin can attach itself to the fiat currency of a Federal Reserve for over 2 years with no repercussions.
Tether has to keep the equivalent amount of dollars as the Tethers they “print” in order for there to be a value correlation of 1:1.
Tether has never provided any evidence of this money existing. No one knows where they bank, or if they even have a bank.
Within the last 6 months, they have created close to $600 million in Tether, $224 in the last 20 days alone.
Bitfinex a Major Shareholder of Tether
Some interesting theories floating around on the forums…
The primary purpose of Tethers is money laundering (more so than most cryptocurrencies). Bitfinex was cut off from the US financial system, which makes it impossible to clear USD wires. At the time, their clients had ∼$400 million USD on deposit with the exchange. Tethers was their solution: a cryptocurrency that was just good as the US dollar – usable on a handful of exchanges in buying BTC and other cryptocurrencies.
Bitfinex is essentially laundering money to support their exchange business.
This is exactly what happened in the final months of Mt. Gox.
The hole gets deeper, continue reading here.