I first mentioned Bitfenix Tethers in my recent post BCH & BTC – Central Bankers, Manipulation, the state of the landscape post 11/11/17 and there is a number of links there I have not included here; so for more of a background, I’d absolutely suggest you have a look there first.
To recap from my post; Some people are discounting them completely as the market cap is low. That makes absolute sense. But others have raised concerns about the legality of Tethers, Bitfinex Solvency and their impact on the market. The accusation centers around the concept that tethers are invented from thin air.
From the Tether website:
100% Backed Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USDT is always equivalent to 1 USD.
From their Terms of Service:
Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency. There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
Question: How can something be backed, but not be redeemable?
This new new information here, worth your reading and considering for your positions:
- Bitfinex never ‘repaid’ their tokens, Bitfinex started a ponzi scheme.
- Bitmex – The implications for Bitcoin of the new Bitcoin Cash difficulty adjustment mechanism
- OmniExplorer – Monitor Tether Creation
- Is Tether, Bitfinex and Blockstream one family, printing tethers and stopping BTC corrections?
- French: Tether (USDT): the controversy intensifies
- Whenever this “Tether-Printing” address sends Tether to the Treasury address, the Treasury sends the same amount to Bitfinex.
Contents of 4, archived here in case it is removed as it is great reference material:
If the information in this post is known already, please disregard.
Unfortunately, during my research, the website locked me out and I can no longer view it. I’m not done researching. I want to dig into Bitfinex’s and Bittrex’s addresses to see what is being done with the hundreds of millions being sent to them. Feel free to contribute further in the comments. Some questions I don’t have answers to yet:
1. Is there more than one “Tether Printer” address?
edit: No. There is only one. See doc.
2. Is there more than one “Tether Treasury” address?
edit: No. There is only one. See doc.
3. What happens to the Tether once they hit the exchange (what are they specifically being used for)?
Anyway, on to the research:
I got started by looking into the “Treasury” address on Tether’s “Rich List.”
This address (3BbDtxBSjgfTRxaBUgR2JACWRukLKtZdiQ) was created on June 9th, 2014 and is an address belonging to Tether’s Treasury. At the time of this writing, it is currently in possession of ~30 million Tether, which will soon be sent to Bitfinex (you’ll see why I know this at the bottom of this post).
This address (3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL) was created on October 6th, 2014. This address has only everreceived Tether once, from Poloniex (1Po1oWkD2LmodfkBYiAktwh76vkF93LKnh), to the tune of 0.00197296 Tether. Yet this address (3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL) sends hundreds of millions of Tether to the Tether Treasury. At the time of this writing, it is in possession of only 0.00197296 Tether. Recognize that balance (the only amount it ever received)? It’s safe to say that this is the address (or one of them) which is “printing” the Tether cryptos.
Okay, now we can ask what those Tethers are being “spent” on… Let’s look at the Tether Treasury address for some clues:
Here’s a list of the latest transactions from this “Tether Printing” address (3MbYQMMmSkC3AgWkj9FMo5LsPTW1zBTwXL) to Tether’s Treasury (3BbDtxBSjgfTRxaBUgR2JACWRukLKtZdiQ), and from the Treasury to Bitfinex (1KYiKJEfdJtap9QX2v9BXJMpz2SfU4pgZw).
From To Amount Timestamp(s) Printer Treasury 25 million 10/28/2017 6:01:42 PM Treasury Bitfinex 25 million 10/29/2017 9:32:00 PM, 11/3/2017 8:58:42 AM Printer Treasury 25 million 11/3/2017 8:50:13 PM Treasury Bitfinex 25 million 11/3/2017 9:12:47 AM, 11/3/2017 9:18:25 PM Treasury Bitfinex 7 million (the only time Tether Printer didn’t send Treasury the same amount) 11/4/2017 10:27:41 PM Printer Treasury 20 million 11/7/2017 10:18:43 PM Treasury Bitfinex 20 million 11/7/2017 10:34:53 PM Printer Treasury 20 million 11/8/2017 10:54:38 PM Treasury Bitfinex 20 million 11/8/2017 11:41:28 PM Printer Treasury 30 million 11/10/2017 12:12:45 AM Treasury Bitfinex 30 million 11/10/2017 12:40:19 AM Printer Treasury 30 million 11/11/2017 8:55:02 AM Treasury Bitfinex 30 million 11/11/2017 10:50:41 AM Printer Treasury 20 million 11/16/2017 5:04:25 PM Treasury Bitfinex 20 million 11/16/2017 5:32:59 PM Printer Treasury 30 million 11/17/2017 Treasury Bitfinex 30 million 11/17/2017 Printer Treasury 30 million 11/17/2017 Treasury Guess. 30 million Probably sometime today or tomorrow.
Is this starting to paint a picture? Okay, but we can’t just stop here. What’s happening to the Tether once they hit Bitfinex? I couldn’t go further to find out, because the site won’t load for me anymore.
But if anyone wants to continue the research, here’s where I left off:
This address (1KYiKJEfdJtap9QX2v9BXJMpz2SfU4pgZw) belongs to Bitfinex. It is currently in possession of ~85 BTC and ~22 million Tether at the time of this writing.
I haven’t yet had a chance to look at each transaction on this address. After this, I planned to research the remainder of these addresses on Tether’s “Rich List.” Of particular interest to me is the 268,596,866 Tether chillin on Bittrex right now.
Some of the articles I’ve posted make the assertion and correlation of evidence, but is it all true?
It certainly seems suss, doesn’t it?