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The NY AG just issued a blanket warning against investing in Cryptocurrencies, without any basis. She is just as guilty as Elon Musk for market manipulation

Its just not the place for NY AG’s to issue a “warning” against an entire asset class that many institutions are investing in today and giants like Fidelity call digital gold and recommend their investors to have a position along with debt component of their portfolio.

Whats worse, the NY State already issues BitLicense, and NY AG’s statement that investing in cryptocurrencies is dangerous contradicts the very purpose why BitLicense is issued in the first place.

Meanwhile the State operates its own lottery ticket scheme: https://nylottery.ny.gov

NY AG is not a licensed financial advisor to even issue such statements. Absolutely reprehensible action by self proclaimed “saviour of investors”. Multiple banks in her jurisdiction have been found to have laundered money for drug cartels and terrorists. As someone so obsessed with protecting investors, she seems rather not bothered with whats going on with these banks that launder cartel money.

You spend 2.5 years and millions of dollars investigating Tether, for a fucking slap on the wrist fine that concluded with Tether not even having to admit they did anything wrong.

Fuck you, Letitia James.



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31 Comments

  1. Another clear case of someone who has not a goddamn clue what they’re talking about, acting like they’re veterans in the subject….

    This is the equivalent of me writing a book on the 3rd trimester, and what to expect…. and I’m a 30 year old dude

  2. You are clearly not informed. What she says is factual. From the investigation they have conducted:

    > Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines,” said Attorney General James. “Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system. This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not. Last week, we sued to shut down Coinseed for its fraudulent conduct. This week, we’re taking action to end Bitfinex and Tether’s illegal activities in New York.

    https://ag.ny.gov/press-release/2021/attorney-general-james-ends-virtual-currency-trading-platform-bitfinexs-illegal

    Here’s the link if you want to read more. They straight up lied and mislead people:

    > Because of Tether’s inability to conduct significant banking activity during this time,it could not itself holddollars sufficient to back the hundreds ofmillions ofnew tethers that had entered the market. Until September 15, 2017, the only U.S. dollars held byTether ostensibly backingthe approximately 442 million tethers in circulationwas the approximately $61 million on deposit at the Bank of Montreal.

    They then went on to conduct an “investigation” on their own accord to prove they had everything backed 1:1.

    > Tether and Friedman agreed that Friedman would conduct the verification of Tether’s assets as of September 15, 2017.

    > On the morning of September 15, 2017, Tether opened an account atNoble Bank. Later that day, Bitfinex transferred$382,446,847.71 from Bitfinex’saccount at Noble Bank into Tether’s accountat Noble Bank. Friedman conducted its verification of Tether’s assets asof8:00 p.m. EST.

    Then they published their “findings” on their site, showing account balances that “proved” Tether was backed 1:1.

    > The September 30, 2017“Transparency Update” and the attached memorandum were misleading. At no point did Tether inform its clients or the marketthat from at least June 1, 2017 until September 15, 2017, tethers were not in fact not backed “1-to-1” by USDheld by
    Page 6of 17Tether in a bank account.Rather, the funds ostensibly backing tethers had been held in an account under the control of its General Counsel, with the balanceaccounted for as a“receivable” from Bitfinex. Noonereviewing Tether’srepresentationswould have reasonably understood that the $382,064,782listedas cash reservesfor tethers hadonly been placed in Tether’s account as of the very morning that Friedman verified the bank balance.

    So in reality, they didn’t have the money. They then got Bitfinex to send them almost 400 million USD, did the audit and transferred the 400 million USD back to Bitfinex.

    About Bitfinex, read this:

    > Throughout November,Bitfinexwould continue to ask “Oz” to return the money, to no avail. For example, on November 1, 2018, Bitfinex told “Oz” that Bitfinex “urgently need liquidity to start paying out our small customer as your channel is stuck.” On November 21, 2018, Bitfinextold “Oz” that “We have 860m with you. I can’t believe we can’t even get 20 or 30 M out…where is all the money, it doesn’t sum up…350 in Poland, 150 in Portugal.” On November 28, 2018, Bitfinexagain messaged “Oz,” stating that “we are at the end of the month and you haven’t been sending out one wire, even 1 usd for the whole month.”

    > Contrary to what was happening behind the scenes,Bitfinex issued astatement on November 11, 2018, statingthat Bitfinex’s“banking remained stable,” while notingthat in October 2018 alone Bitfinex “processed over 700 withdrawals representingmore than $1 [billion].”

    They mislead their customers too.

    Both Tether and Bitfinex cannot conduct business in New York anymore because the things they did was illegal. They had to pay a 18.5 million fine. They have to publish their assets now every quarter for two years to show they are backed as Tether claimed.

    Just today morning, Tether printed 80 million at 1:10 am in the morning. At the same time, Bitcoin volume saw a massive increase and surge.

    Tether printing: https://i.imgur.com/aQjp1Db.png
    Bitcoin surge: https://i.imgur.com/oqh9BP9.png

    Tether has so far created 35 billion USD. So far they have shown that the were willing to lie and create money out of thin air. What do you think they do with that Tether? What’s their business model?

    Investing in Cryptocurrency IS dangerous. Exchanges, Tether – they’re all shady as fuck. Why do exchanges not let you trade in USD but have you buy USDT or other stablecoins? Think about it.

    So what happens if people lose confidence in Tether? What if you can only sell your Crypto for Tether but you can’t cash our your Tether. Or maybe you still can while their reserves allow it but if people continue cashing out, you won’t be able to do it? Are exchanges legally obligated to buy a Coin like Tether from you for money?

    If Tether goes down, the entire Cryptomarket will go down with it. But keep talking about how they don’t know what they’re talking about. I mean you as a random reddit poster know better. Just like their entire team of lawyers, you have also looked at 2.5 million documents, worked on the thing for more than 3 years. I’m SURE you know better.

  3. This headline is the show stealing BS. Read the article [https://www.bloomberg.com/news/articles/2021-03-01/new-york-ag-blasts-crypto-market-as-high-risk-and-unstable?utm_source=google&utm_medium=bd&cmpId=google](https://www.bloomberg.com/news/articles/2021-03-01/new-york-ag-blasts-crypto-market-as-high-risk-and-unstable?utm_source=google&utm_medium=bd&cmpId=google) and then decide. There is nothing stated in that article that was out of order or out of context for what an AG should discuss. It was about criminal behaviour and a lack of regulation over exchanges. Every second post on binance or (insert platform) is about a technical glitch where they lost money at the exchanges gain.

  4. “Cryptocurrencies are high-risk, unstable investments that could result in devastating losses just as quickly as they can provide gains … All investors should proceed with extreme caution when investing in virtual currencies.”

    This is what people here say. DCA and don’t invest more than you’re prepared to lose.

  5. What they don’t understand is REAL people who she claims to be protecting are losing REAL money off her doing this. She’s HURTING her constituents. This is RIDICULOUS and I can’t wait until this kind of behavior is discouraged.

  6. I don’t mind individuals (even government officials) expressing their distrust and pointing the obvious risks with a violate new asset class. It comes with the territory of change.

    What frustrates me is the next tweet where she (unprovoked) threatens exchanges who won’t play by the rules. What rules? Where is the same level of scrutiny for highly manipulated stock exchanges?

  7. Tbh they have a pretty good idea on how Tether operates and whether they’re propping up this whole market. That being said NYC has Wall Street, which promotes wealth inequality like it’s their job.

  8. She doesn’t have a clue. It’s really depressing (though not surprising) how politicians are constantly claiming to be an expert and talking about things they just don’t understand.

    Anyone remember when Zuckerberg was testifying in front of the US Senate (or was it the House?) and someone asked him how Facebook made money? Crazy.

    She’s just saying things like this to get her name in the papers and reinforce the beliefs of a majority of the people in her state.

  9. I hate being from NY. I’m not very sure of the laws regarding crypto here but I’m unable to the coinbase reward programs and i’ve heard about the bit licence but don’t know what that means

  10. This is the Fight stage …..

    ​

    First they ignore you,

    then they laugh at you,

    then they fight you,

    Then you win,

    — Mahatma Gandhi

    ​

    Be ready to win !!!

  11. Her follow up tweet:

    Let this also serve as a warning to those facilitating these trades:

    If you don’t play by the rules, we will not hesitate to shut down your operations.

  12. Just like doctors who think they understand airflow dynamics in a building using ventilation not equipped to filter viruses saying 6ft apart is good enough when there is literally 60,000 cubic feet per minute of air circulation. It’s not good enough being 100 feet apart. You’re getting blasted with anything in the air if you’re in there long enough.

    It’s the same as me saying I know what I’m talking about when it comes to surgery because the surgery room has air conditioning.

  13. This is is extremely bad behavior being shown by “people of power”. I feel like a lot of the times these people just stick with whatever opinion they had 5 years ago and keep it untill well… it’s too late. Then flips the switch on whatever agenda they’re being paid by. Just bad behavior.

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