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New Jersey Attorney General Prepares Cease And Desist Order Against Multi-Billion Dollar Bitcoin Financial Services Platform (Blockfi) Blockfi, for those who dont know, is one of the companies offering interest on (uninsured) crypto deposits. Apparently at least in part by violating securities regulations. drk fucked around with this message at 04:13 on Jul 20, 2021 |
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Jul 20, 2021 03:48
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| # ? May 29, 2024 15:18 |
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literally watching bitcoin crash under 30k... someone is buying the dip to prop it up though.
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Jul 20, 2021 04:18
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They're so hosed if it falls much below that.
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Jul 20, 2021 04:25
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for a while now the game has been every time it drops below 30 the
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Jul 20, 2021 04:25
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tether hasn't printed much money in a while..only thing that could technically prop it up is USDC. what's triggering this new selloff but its probably also this news: https://twitter.com/DelRayMan/status/1417304092574195713
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Jul 20, 2021 04:31
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Mimesweeper posted:for a while now the game has been every time it drops below 30 the The bouncing has been so obvious. Nearing 30k? Wow all of a sudden it's back to 33k. Like clockwork. Eth about to touch 1899? Nope, 1975 right away! They would have you believe that it's the sheer volume of DCA'ers seeing an opportunity to lower the cost of their average buy in, but how many of these are people were there before BTC was up at 30k? It just doesn't make that much sense. Also would love to hear the story of the miner who committed unexpected hara kiri via ln2 because that sounds insane if true.
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Jul 20, 2021 04:32
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i dont remember anyone killing themselves with nitrogen, just the heatstroke guy and the kicking over a nitrogen tank guy and tether doesnt have to print money, they already printed billions. and hell, these jerks have been putting fake numbers on websites since the magic the gathering online exchange
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Jul 20, 2021 04:36
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wasnt the 99.99999999999........99999999999% pure silver guy also show a completely lack of how math and fractions work. also why have silver when he has coinz??
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Jul 20, 2021 04:51
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ultrafilter posted:They're so hosed if it falls much below that. I’d say  but we all know the tether printer will brrrrrr and it’ll mysteriously jump back up
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Jul 20, 2021 04:52
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Love my dehyrdated strawberries.
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Jul 20, 2021 04:56
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Shrimp or Shrimps posted:Eth about to touch 1899? Nope, 1975 right away! Must've turned the bot off today, then: 
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Jul 20, 2021 04:59
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this might be the last chance to get some cheap butts, buy buy buy
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Jul 20, 2021 05:01
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BlockFi confirms the rumour: https://twitter.com/BlockFiZac/status/1417316834244796416
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Jul 20, 2021 05:45
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Mimesweeper posted:this might be the last chance to get some cheap butts, buy buy buy im not a nocoiner im just waiting an infinite amount of time for the price to become 0, then i can get all the bitcoin i want
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Jul 20, 2021 06:11
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i don't know if it'll get back to 30k, but there are a lot of people trying really hard to shoot it back up to that price
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Jul 20, 2021 06:12
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you'll know the crash is serious when the suicide hotline is stickied in r/bitcoin again
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Jul 20, 2021 06:32
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Tether has been keeping the printer on low since the whole New York investigation, but USDC (backed by whom?) is fulfilling the same role now making the printer go brrrrrrrr
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Jul 20, 2021 06:37
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Tether printer has actually been off for over a month - there are less Tether in circulation than there was a month ago. This, is good for Bitcoin because something something dip
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Jul 20, 2021 06:46
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vortmax posted:Tether has been keeping the printer on low since the whole New York investigation, but USDC (backed by whom?) is fulfilling the same role now making the printer go brrrrrrrr In Circle's SPAC filing they used figures from December showing a $4 billion dollar market cap for USDC, which has since risen to $26 billion and counting. Why they would use December numbers in July is frankly, puzzling. Let's also consider their most recent attestation which basically states that, we looked and the money is definitely there.  But in what?? Well it turns out the truth is even more mindbogglingly stupid than you could imagine. https://twitter.com/Arturo_P_A/status/1413270813906771970 Once again, this company is going public for billions (with a B) and American securities regulators are caught asleep at the wheel. They're going to wake up in a daze after their 15th car wreck muttering "how could this happen... how could this all have happened" then wander off into another car that they'll wrap around a lightpole approving the next blockchain juicero garbage company.
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Jul 20, 2021 13:23
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drk posted:Tether printer has actually been off for over a month - there are less Tether in circulation than there was a month ago. This, is good for Bitcoin because something something dip https://www.youtube.com/watch?v=QvLKVcEACls
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Jul 20, 2021 13:23
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Beached Whale posted:But in what?? Well it turns out the truth is even more mindbogglingly stupid than you could imagine. It can't possibly be that stupid. You must be explaining it wrong.
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Jul 20, 2021 15:55
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It's like the "Guh" kid but in large scale and on purpose.
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Jul 20, 2021 16:09
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Circle actually revealed the USDC backing today, and its fairly boring. (pdf of report) They are taking on a non-zero amount of credit risk - exactly what assets comprise their commercial paper and corporate bonds aren't stated but they do state an average credit rating of A and a minimum of BBB+. But overall, looks fairly legit.
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Jul 20, 2021 17:01
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drk posted:Circle actually revealed the USDC backing today, and its fairly boring. Tether also had 75.85% of their reserves marked as "Cash & Cash Equivalents" and I don't think anyone here is going to say it isn't total bullshit either. Bond ratings similarly mean nothing unless they state w̶h̶o̶ ̶r̶a̶t̶e̶d̶ ̶t̶h̶e̶ ̶b̶o̶n̶d̶s̶ ̶a̶n̶d̶ ̶a̶l̶s̶o̶ what the bonds are for, neither of which are things that they did. EDIT: Looks like they said it was S&P but it could still be entirely made up as they did not state what the bonds are, they also have not been fully audited by an independent 3rd party auditor 
Beached Whale fucked around with this message at 17:23 on Jul 20, 2021 |
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Jul 20, 2021 17:08
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Mimesweeper posted:for a while now the game has been every time it drops below 30 the I've noticed every time crypto dips I suddenly get bombarded with Twitter ads trying to sell me Dogecoins, so they're pumping it that way as well
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Jul 20, 2021 17:11
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drk posted:Circle actually revealed the USDC backing today, and its fairly boring. Sweet summer child. Cash equivalents is a term that's normally reserved for things like treasury bonds and poo poo. But do you really think that is what they're using as cash equivalents and not a bunch of cryptocoins or crypto derivatives? You think someone running a cryptocurrency doesn't think another cryptocoin like Tether is a cash equivalent? poo poo House of Cards man jokes fucked around with this message at 17:14 on Jul 20, 2021 |
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Jul 20, 2021 17:11
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1 Cash includes deposits at banks and Government Obligation Money Market Funds. Cash Equivalents are defined as securities with an original maturity less than or equal to 90 days in accordance with generally accepted accounting principles (US GAAP).
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Jul 20, 2021 17:14
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"""cash equivalents""" """""""commercial paper""""""" """""""""thin loving air"""""""""
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Jul 20, 2021 17:18
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Of course all this is navel gazing until a licensed auditor actually stamps a report saying "I saw the money with mine own eyes." I kind of doubt this has happened.
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Jul 20, 2021 17:23
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Fur20 posted:im not a nocoiner im just waiting an infinite amount of time for the price to become 0, then i can get all the bitcoin i want Same but I'm waiting for the price to become negative, so someone will pay me to take them away
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Jul 20, 2021 17:27
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kw0134 posted:Of course all this is navel gazing until a licensed auditor actually stamps a report saying "I saw the money with mine own eyes." I kind of doubt this has happened. The report is from Grant Thornton. I am aware an attestation is not an audit.
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Jul 20, 2021 17:35
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it's basically a press release
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Jul 20, 2021 17:36
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"My client told me it had these assets" is not proof of anything.
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Jul 20, 2021 17:41
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drk posted:The report is from Grant Thornton. I am aware an attestation is not an audit. I wonder why they chose Grant Thornton 
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Jul 20, 2021 17:41
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Mercury_Storm posted:"""cash equivalents""" You can't convince me everything isn't risk secured by itself in the crypto ecosystem without some hard biting audits or history of adhering to even the regulations that exist with advocacy for regulations that should exist.
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Jul 20, 2021 17:49
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Karia posted:Love my dehyrdated strawberries. the only thing i hate more than strawberries dehydrated w/ unfiltered heat is fiat currency
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Jul 20, 2021 18:02
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Beached Whale posted:Once again, this company is going public for billions (with a B) and American securities regulators are caught asleep at the wheel. They're going to wake up in a daze after their 15th car wreck muttering "how could this happen... how could this all have happened" then wander off into another car that they'll wrap around a lightpole approving the next blockchain juicero garbage company. I gotta give the Circle folks credit, they're basically doing an exit scam via SPAC and trying to cash out and leave some other big dumb investors holding the bag before the regulators wake up. Unlike Tether, they kept things appearing just legit enough that they actually have a hope of pulling this off. drk posted:Circle actually revealed the USDC backing today, and its fairly boring. It doesn't matter if this breakdown is legit. (Though as folks are pointing out, there's still plenty of reason to stay skeptical.) It doesn't matter if USDCs really are "backed" by quality assets. The entire use case of dollar-backed stablecoins is to avoid AML/KYC laws and regulations, the tokens are just digitized bearer bonds but without any clear and enforceable legal agreement stating so, and all the exchanges trading them are arguably violating American securities exchange laws. It doesn't matter if this reserves report is accurate because USDC (and USDT and every other dollar-backed stablecoin) was created in bad faith. Circle is just a wildcat bank for the internet era.
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Jul 20, 2021 18:06
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Blotto_Otter posted:It doesn't matter if this breakdown is legit. (Though as folks are pointing out, there's still plenty of reason to stay skeptical.) It doesn't matter if USDCs really are "backed" by quality assets. The entire use case of dollar-backed stablecoins is to avoid AML/KYC laws and regulations, the tokens are just digitized bearer bonds but without any clear and enforceable legal agreement stating so, and all the exchanges trading them are arguably violating American securities exchange laws. It doesn't matter if this reserves report is accurate because USDC (and USDT and every other dollar-backed stablecoin) was created in bad faith. Circle is just a wildcat bank for the internet era. This is a very good point - there are already plenty of legitimate, secure, easy, and cheap (or free) ways to electronically transfer dollars. USDC in particular is one of the biggest coins used in DeFi, which is... 100% in violation of securities laws (there too, that is the entire point)? The EU released some proposed rules on implementing the so called "travel rule" for all cryptocurrency wallets today, based on some FATF guidelines. The travel rule essentially says you must know who is sending money to who in order for a transmission of money to be legal. This would absolutely kill the use for stablecoins.
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Jul 20, 2021 18:17
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Blotto_Otter posted:It doesn't matter if this breakdown is legit. (Though as folks are pointing out, there's still plenty of reason to stay skeptical.) It doesn't matter if USDCs really are "backed" by quality assets. The entire use case of dollar-backed stablecoins is to avoid AML/KYC laws and regulations, the tokens are just digitized bearer bonds but without any clear and enforceable legal agreement stating so, and all the exchanges trading them are arguably violating American securities exchange laws. It doesn't matter if this reserves report is accurate because USDC (and USDT and every other dollar-backed stablecoin) was created in bad faith. Circle is just a wildcat bank for the internet era. If it isn't interest bearing is it really a digitized bearer bond? They are basically acting like a bank though.
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Jul 20, 2021 23:12
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| # ? May 29, 2024 15:18 |
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Full BlockFi Cease and Desist Order is out: https://www.nj.gov/oag/newsreleases21/BlockFi-Cease-and-Desist-Order.pdf Juicy bit is: quote:27. BlockFi then pools these cryptocurrencies together, where according to BlockFi, it (1) reserves a portion of the cryptocurrencies to meet investor withdrawal demands, (2) lends some Basically, money goes into black box, and hopefully out comes interest payments. But customers risk a 100% loss for as little as 0.25% interest (on Bitcoin deposits, less than a FDIC insured savings account pays out). Other states are almost sure to follow up with bans of their own soon, if the SEC doesnt get around to it first. edit: more context in quote
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Jul 20, 2021 23:34
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