Exposing Tether - Bitcoin's Biggest Secret

What Hacker News said

Strong rec paulgb · 2021-06 · on “Legal expert says Tether and Binance Coin are likely picks for SEC lawsuit”

A YouTuber called Coffeezilla had an entertaining video yesterday that I think is one of the most comprehensive (and entertaining) takes on this. It's pretty damning when you look at all the evidence together. [this video] Even in the off-chance that people with a track record of lying about being backed have suddenly gone legitimate, it's a pretty big indictment of the system that it could grow to the size it did while looking incredibly like a scam .

Recommends _fat_santa · 2021-06 · on “Legal expert says Tether and Binance Coin are likely picks for SEC lawsuit”

Saw a really good YT video[1] on Tether yesterday. Breaks down all the sketchiness. But the problem he mentions in the video is a problem with pretty much all stablecoins, in order to function you must have the proper reserves before generating a token, but inevatably greed kicks in and you start thinking what if you minted coins without the backing. USD pegged stablecoins are basically money printing machines in the hands of whoever runs the project. [1]: [this video]

Recommends santamex · 2021-07 · on “Tether executives said to face criminal probe into bank fraud”

This one explains the Tether scam quite nice: [this video] Edit: summary: 8 people founding the tether company, 7 of them with a criminal background. Lying and denying and then admitting after they have no other option. Yeah, seems like a nice company…

Recommends arcticbull · 2021-07 · on “Tether executives said to face criminal probe into bank fraud”

I highly recommend the first five Cas Piancey and Bennett Tomlin podcasts [1] and the (albit a little bit dated) Kalzumeus post [2]. I also really enjoyed the Calacanis podcast with Bitfinex'ed [3] and the Coffeezilla [4]. [1] [LINK] [2] [LINK] [3] [LINK] [4] [this video]

Recommends yadaeno · 2021-07 · on “Tether executives said to face criminal probe into bank fraud”

What I don't understand is why major exchanges continue to give tether their customers money when it's not backed by cash? Would an exchange not be incentivised to manage the cash themselves and significantly reduce risk for their customers and business? It seems like huge risk for what looks like a minor convenience. Also, very good video on the history and current state of tether: [this video]

Recommends richbell · 2022-12 · on “Caroline Ellison, CEO of Alameda Research, pleads guilty to seven offences”

> I don’t hold any tether, and I wouldn’t recommend it to others. But the common opinion that Tether is insolvent might be wrong. Tether, as a stable business, is a money printing machine. I’m not sure it’d be worth risking the business and jail time to pump shitcoins I encourage you to watch Coffeezilla's video about Tether. There's lots of shady stuff going on behind the scenes, like them borrowing $383M from Bitfinex and showing that to an auditor to prove they were solvent (~20:00). [this video]

Recommends udev4096 · 2025-09 · on “Stripe Launches L1 Blockchain: Tempo”

Bullshit. The biggest stable coin, Tether, is pure scam. They are essentially creating money out of nowhere. They were found guilty of massive fraud and were fined $18M [1]. They refuse to get audited by a third-party [2]. The ones that do audit them are just as sketchy as them [3]. I would recommend watching this video to grasp the scope of their fraud [4] [1] - [LINK] [2] - [LINK] [3] - [LINK] [4] - [this video]

Cites gogopuppygogo · 2021-06 · on “Doge Branded as Ponzi by Federal Reserve Bank of Minneapolis President”

Crypto currencies today are basically all decentralized Ponzi schemes inflated in value by the very centralized tether that is is printing something like $4Bn a week of new tether with no US dollar currency known to be backing it: [this video]