/biz/ - Business & Finance

It's a bit more complicated and even more insidious than one would think.
If one follows the history of their exchange tether wallet one can see that it has not held equal amounts of tether to what their users have held on the exchange. It has gone as low 1.8m tether.

What this means is that the tether that people have/had on bitfinex wasn't even real tokens on the omnilayer, and what they used the tether their minted for was solely to pump it on other exchanges that used tether at the same time. On their own exchange, they pumped it with "imaginary tether", that is, imaginary fake USD IOUs. They also initiated longs and shorts vs their users during pumps and dumps of BTC with these account credited but non-existent tether tokens in order to reduce the tether balance of their margin trading customers so their buys of BTC with fake tether didn't cause a massive increase of fake tether on bitfinex, which would lead to all sorts of problems like higher rate of tether token withdrawals to other exchanges by users (they'd have to mint more tether for that) and higher buy pressure within the exchange for various crypto due to "richer" users.

Essentially, through all of this, they spent likely more than 4 times the tether they minted every time they did, and got a lot of it back, but a lot of it was fake (since it was inside bitfinex) and enabled them to cancel it out while still stacking BTC rewards.

The inflow of tether from other exchanges to bitfinex, combined with their market manipulation and margin trading against their own customers also allowed them to alleviate the internal exchange problem of too much fake tether.

It's a bit more complicated and even more insidious than one would think.
If one follows the history of their exchange tether wallet one can see that it has not held equal amounts of tether to what their users have held on the exchange. It has gone as low 1.8m tether.

What this means is that the tether that people have/had on bitfinex wasn't even real tokens on the omnilayer, and what they used the tether their minted for was solely to pump it on other exchanges that used tether at the same time. On their own exchange, they pumped it with "imaginary tether", that is, imaginary fake USD IOUs. They also initiated longs and shorts vs their users during pumps and dumps of BTC with these credit but non-existent tether tokens in order to reduce the tether balance of their margin trading customers so their buys of BTC with fake tether didn't cause a massive increase of fake tether on bitfinex, which would lead to all sorts of problems like higher rate of tether token withdrawals to other exchanges by users (they'd have to mint more tether for that) and higher buy pressure within the exchange for various crypto due to "richer" users.

Essentially, through all of this, they spent likely more than 4 times the tether they minted every time they did, and got a lot of it back, but a lot of it was fake (since it was inside bitfinex) and enabled them to cancel it out while still stacking BTC rewards.

The inflow of tether from other exchanges to bitfinex, combined with their market manipulation and margin trading against their own customers also allowed them to alleviate the internal exchange problem of too much fake tether.

It's a bit more complicated and even more insidious than one would think.
If one follows the history of their exchange tether wallet one can see that it has not held equal amounts of tether to what their users have held on the exchange. It has gone as low 1.8m tether.

What this means is that the tether that people have/had on bitfinex wasn't even real tokens on the omnilayer, and what they used the tether their minted for was solely to pump it on other exchanges that used tether at the same time. On their own exchange, they pumped it with "imaginary tether", that is, imaginary fake USD IOUs. They also initiated longs and shorts vs their users during pumps and dumps of BTC with these credit but non-existent tether tokens in order to reduce the tether balance of their margin trading customers so their buys of BTC with fake tether didn't cause a massive increase of fake tether on bitfinex, which would lead to all sorts of problems like higher rate of tether token withdrawals to other exchanges by users (they'd have to mint more tether for that) and higher buy pressure within the exchange for various crypto due to "richer" users.

Essentially, through all of this, they spent likely more than 4 times the tether they minted every time they did, and got a lot of it back, but a lot of it was fake (since it was inside bitfinex) and enabled them to cancel it out while still stacking BTC rewards.

The inflow of tether from other exchanges to bitfinex, combined with their market manipulation and margin trading against their own customers also allowed them to alleviate the internal exchange problem of too much fake tether.

>>8711525
most secrets, even government secrets, only come out years later, if at all. we cannot know how much never came out... because it never came out.
it's a special kind of logical fallacy to assume big companies and governments can't keep most of their secrets based on not knowing about secrets they have kept (which would mean they hadn't kept them).

for example, there's no whistleblower from bitfinex or many other exchanges despite it being proven that they have engaged in fake volume wash trading.

no whistleblowing about bitfinex not holding fund amounts corresponding to user deposits and likely pumping and dumping coins and creating long and short positions with fake money credited to their own accounts.

pic related. anyone with brains will understand
anyone who doesn't understand isn't worth replying to

>>8627363
>>8627419
I know there are social media shills employed by bitfinex here. You've not been very subtle. Never actually addressing anything of substance and seeming to be a fan of bitfinex in an emotional way beyond what would be realistic for any normal user of the exchange. There is no bitfinex token either, so there's no incentive for random anons to shill beyond what they believe.

You clearly want our neetbux but you can just fuck off desu.

You can print tether at will, yet even that, you don't bother to have 1:1 to the amount that users on your exchange supposedly own.

Maybe you don't need an audit, considering you're pretty transparently shady to anyone with half a functional braincell.

>trusting shitfinex
a lot of the trades are fake and they credit themselves non-existent currency to trade internally and manipulate prices
you can figure out the truth of this by considering this pic
if they did it with tether, which they can even mint at will to have ample supply of "real tether", why wouldn't they do it with other cryptocurrencies?

>>5174412
>their daily volume
for all we know their "daily volume" is as fake as the tethers people supposedly hold on their exchange and by that I'm not talking about that tethers are a fraud, they are, but that the exchange doesn't even give a shit about holding their user's tethers in their exchange wallet, and just sells all deposited tethers by their users on other exchanges.

pic related

They could have gotten enough to back tether, yes. But banks won't touch them apart from http://www.trustnodes.com/2017/11/22/bitfinex-reveals-new-polish-bank-account-panama-registered-company

And they hid the bitfinex-tether relationship for as long as they could.

Wells fargo and Taiwanese banks noped the fuck out and won't touch them with a ten foot pole and you can probably guess why.

Oh and they got subpoenaed recently and they will not stand up to scrutiny at all. https://pbs.twimg.com/media/DRGSIPEW4AEi_Du.jpg

>>4929362
>I believe that bitfinex actually has been behind a lot of the BTC dumping in the past few days to shore up the tether reserves.

To use on other exchanges? Because they don't even consistently hold tether in any significant quantities in their own exchange wallets, despite realistically their users should probably have 500m usd worth of tether or more. Pic related, a low of bitfinex exchange wallet.

The "tether" traded in bitfinex is as fake as if the BTC traded there wasn't backed by any BTC in the exchange wallet. Yes. It's imaginary imaginary USD IOUs instead of just being the imaginary USD IOUs that "real tether" is.

https://wallet.tether.to/richlist
Bitfinex has been selling user tethers on other exchanges that has been staring us in the face all along.
Bitfinex barely holds tether. The rich list you see shows how much each exchange has on behalf of their users + their own. It has been as low as 1.8m some days.

Considering there is much more you can use tethers for on bitfinex than bittrex and that bitfinex volume (even excluding shorts/longs) tends to be equal or higher, the amount of tethers people "have" on bitfinex should be much higher than what people "have" on bittrex.
The only reasonable explanation for this discrepancy is that bitfinex is taking the tethers of its users and selling it on other exchanges while having only as much tether in their own possession as they need in order to effect withdrawals by users.
The implication of this is that tethers on bitfinex are "fake tethers". For example, imagine if users found out bitfinex only had 5% of the total bitcoin supposedly on the exchange in their possession.

Further, this means that the total circulating supply of tether is what we thought it was, plus the entire amount that people "have" on bitfinex, in addition to what the people behind bitfinex has credited themselves with.

For all we know there could be up to a billion or even more "tethers" on bitfinex right now.

If the very credible suspicions about tether not being backed by any USD in reality is also true, this could be a case of an entity effectively not just stealing the total marketcap of tethers worth of crypto from the crypto community, but that in addition, circulating "tethers" on their own exchange, and potentially even more given the possibility of using those "tethers" to manipulate both prices and meet the other side of shorts and longs.

In sum, a scam with the potential to have siphoned billions of USD in cryptocurrencies, with the bitfinex/tether link only being the tip of a much nastier and much larger iceberg.

Bitfinex barely holds tether. The picture you see is how much each exchange has on behalf of their users + their own.

Yes, bitfinex doesn't even have their own users tether, they sell them on other exchanges and their own users pay each other in the exchange with not just credited tethers, but imaginary credited bitfinex tethers.

Yes, imaginary imaginary USD IOUs. I know, It's hilarious.

Essentially, this means the total circulating supply of tether is what we thought it was, plus the entire amount that people "have" on bitfinex. Look at the picture. 1.8m. Lmao.

Considering there is much more you can use tethers for on bitfinex than, say, bittrex, and the bitfinex non-fake volume is likely not higher or much higher on bittrex, the amount of tethers people "have" on bitfinex should be much higher than what people "have" on bittrex.

For all we know there could be up to a billion or even more "tethers" on bitfinex right now. This is in addition to the official market cap.

Oh shit wrong pic
Here.

If bitfinex is the exchange where people use tethers the most (short/long, high general volume), shouldn't their cold wallet have a high amount of tethers instead of a measly 1.8m?

Have they been, in addition to their other shady practices, selling the tethers of their own users on other exchanges?

For people fudding finex being manipulating Tether , Their wallet have 1.5 M compared to bittrex 300 M