Altcoins Talks - Cryptocurrency Forum
Learning & News => News related to Crypto => Topic started by: rdluffy on October 02, 2024, 02:28:28 PM
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(https://i.ibb.co/g6m73Zv/Screenshot-2-10-2024-82532-www-dlnews-com.jpg) (https://ibb.co/d7jcr4b)
Source
(https://www.dlnews.com/articles/markets/tether-teams-doj-freeze-six-million-usd-crypto-scam-proceeds/#:~:text=Tether%20recently%20assisted%20the%20US%20Department%20of%20Justice%20(DOJ)%20in)
I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
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Right on the scam victim's point of view. Other than them, there will be people that would appreciate what Tether did until it happens to their own USDT. Centralized exchanges refusing your withdrawal is already bad enough, how much more if you can't use it at all?
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Tether has done well through their assistance in making sure that the funds was recovered. It is a good one in such kinds of situation but we should also known that for any reason that tether find to be concerning, they can freeze any body's asset in their wallet, including me and you. That's the disadvantage of centralized crypto.
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Right on the scam victim's point of view. Other than them, there will be people that would appreciate what Tether did until it happens to their own USDT. Centralized exchanges refusing your withdrawal is already bad enough, how much more if you can't use it at all?
exactly. this is justified in a sense but on the other hand, people should also look at how they could use this power to freeze and block your money when they make a platform obey on orders. and this has been the reason for other countries to circulate to have economic freedom or in the case of people who have been speaking against the government, the term would be financial freedom.
this is why there should be platform where anyone is allowed and politically not involved or just independent to influence.
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Hence why we shouldn't really have any money at all in USDT ever, no idea how they even do this and how it could even work out. This isn't a decentralized one, and we have seen this become something that is not acceptable and because of this we are not going to end up with a great return. Forget about it and never consider holding any at all. People are looking into USDT differently thankfully, we have seen it reach a point where people can't really consider this acceptable. This should be something we need to get away from as much as we need to, it will definitely get much better with decentralized options.
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I do not think that they have any other options though, I mean if they didn't help the government, then obviously they will be the on going to be attack in my opinion.
Although for me it won't change anything, I mean some of us might feel that this move is still not enough to proved that Tether still runs on fractional reserves similar to banks or the way they didn't cooperate with the government earlier when they are under scrutiny and doesn't want to be audited.
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Are we to expect Tether not to cooperate with the government on any matter when it is a very centralized platform hence has to act according to what the government expects it to? Tether is doing business and it would be a nightmare for it to fight the government for any reason. On the ground of a scam, I would surely understand and would even prod other platforms to help the government run after the bad actors so we can help the industry get cleaner as it has been the paradise island of many scammers and fraudsters worldwide. However, there is one thing we should demand and that is transparency all the time. Good thing that Tether is sharing to the community on this matter and this could even be a strong message to scammers everywhere that what they are doing will not be tolerated.
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Are we to expect Tether not to cooperate with the government on any matter when it is a very centralized platform hence has to act according to what the government expects it to? Tether is doing business and it would be a nightmare for it to fight the government for any reason. On the ground of a scam, I would surely understand and would even prod other platforms to help the government run after the bad actors so we can help the industry get cleaner as it has been the paradise island of many scammers and fraudsters worldwide. However, there is one thing we should demand and that is transparency all the time. Good thing that Tether is sharing to the community on this matter and this could even be a strong message to scammers everywhere that what they are doing will not be tolerated.
This is a threat to everyone who will be using USDT however. They will be confiscating their money in the case of uncertainty. Let's say a war breaks while USDT is being used to fund everywhere, there will be a chance that they freeze every accounts sending USDT especially if they suspect it's sending somewhere in the war zone.
While they may see it reasonable, a family trying to survive may died of hunger instead because of freezing stable coins.
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This is a threat to everyone who will be using USDT however. They will be confiscating their money in the case of uncertainty. Let's say a war breaks while USDT is being used to fund everywhere, there will be a chance that they freeze every accounts sending USDT especially if they suspect it's sending somewhere in the war zone.
While they may see it reasonable, a family trying to survive may died of hunger instead because of freezing stable coins.
there are always two sides to consider
I too am very divided. I agree with Tether helping to fight scams, they have already managed to recover funds from victims, and I would like help too if I had lost my money in a scam
But the downside is that if one day your country has a serious problem and funds are frozen, it could be a nightmare. Or you get coins that could be confiscated after a while for some reason... it's quite complicated.
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Of course I wouldn’t trust USDT to hold my assets, we all know that no one actually owns USDT, but Tether, unfortunately Tether has turned into a money-collecting company for the US government.
What’s worse is that these practices go beyond the borders of the United States, as I read in the news that:
Tether recently assisted the US Department of Justice (DOJ) in seizing over $6 million tied to a Southeast Asian crypto-confidence scheme.
what does the US have to do with seizing money from users’ wallets in Southeast Asia? Has the US become the world’s policeman and Tether its assistant? >:(
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"Crypto-confidence scheme" sounds to me like the classic investment scam, where the user wires a transfer to a bank account and the scammers convert the balance to USDT.
Of course Tether had to get involved here, because it was legally required to, but I can't help but think why don't these dimwits use a more censorship-resistant cryptocurrency for payouts like BTC or XMR.
(don't get me wrong though, I am happy that their lunacy leaves them out of pocket)
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Tether can confiscate your coins at anytime, even if you store it in your own wallet, a lot of us have known this for a very long time. Do i like that? NO, but it is hard to say it out loud since they just recovered stolen funds. I do not recommend one to hold usdt for a long time, i feel safer when i know no entity can confiscate my BTC which is in my self custodial wallet.
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I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
Previously, we heard that centralized exchanges may freeze your account and balance to help the government and authorities. But, when it is the crypto currency like Tether, then this is time to rethink about holding USDT. I should have control of my own money and not the creator of a token. Bitcoin is the greatest example. No one can freeze your balance if you are using a non-custodial wallet.
So, what is the alternative of USDT? I am not sure if they are going to do that because the government creating pressure like what they did with Pavel Durov in France. Usually I do not hold USDT. But sometimes I keep some USDT on centralized exchanges to make some purchase sometimes. I do not consider it as holding because it's already out of my control when I keep it on a centralized exchange.
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Previously, we heard that centralized exchanges may freeze your account and balance to help the government and authorities. But, when it is the crypto currency like Tether, then this is time to rethink about holding USDT. I should have control of my own money and not the creator of a token. Bitcoin is the greatest example. No one can freeze your balance if you are using a non-custodial wallet.
Exchanges are supposed to freeze coins even more than Tether when there is an ongoing investigation, but most people have trouble making exchanges even listen to their please. I certainly do not mind if they become like (the hated) Paypal in this regard, but it turns out that most of these exchanges are just incompetent.
So, what is the alternative of USDT? I am not sure if they are going to do that because the government creating pressure like what they did with Pavel Durov in France. Usually I do not hold USDT. But sometimes I keep some USDT on centralized exchanges to make some purchase sometimes. I do not consider it as holding because it's already out of my control when I keep it on a centralized exchange.
DAI is like USDT but it is decentralized and cannot be frozen. It runs on Ethereum's network. I'm not sure if there is such thing as DAI-TRC20, DAI-BEP20 and so on.
(Also, this reminds me of BRC-20, which was supposed to be like this. Who even uses that anymore? Lol.)
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DAI is like USDT but it is decentralized and cannot be frozen. It runs on Ethereum's network. I'm not sure if there is such thing as DAI-TRC20, DAI-BEP20 and so on.
(Also, this reminds me of BRC-20, which was supposed to be like this. Who even uses that anymore? Lol.)
I know about DAI but I didn't know if it is really decentralized. Since it is running on ETH network, yes, the main chain is ERC-20. But I just checked coinmarketcap and found that DAI is available on 24 more blockchains which means yes, there are things like TRC-20, BEP20 and many more. But the ETH chain is the main chain for DAI which makes me to think about the transaction fees.
I remember I didn't like ETH because of the transaction fees. If someone use DAI on a wallet like Metamask, they have to keep ETH or BNB to pay fees for their DAI Transaction. But, the main problem is transaction fees on ETH main net. ETH transaction fees sucks. Sometimes you have to pay $10 fees to send a $5 transaction.
Also, I figured out DAI was at 0.96 at some point in 2020. Not sure if it was because of the multiple chain issues or if it was de-pegged.
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I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
Well this is not the first time Tether has made it clear to usdt holders that they are going to be working with government to fight money laundering and terrorism, I don't know how they plan to go investigate such things but ever since they lose case against SEC and settle millions of dollars, they have been restricting many USDT addresses.
If anyone want to protect there money, it's best they avoid USDT because either you did the mentions or the government piss about you, they will come for you and if you have millions of dollars worth of usdt in their contracts, it will be block immediately, better use a decentralized stablecoin.
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I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
I did not know before Tether could seize USDT. I mean, how, can they seize any USDT, like if I have $100 in USDT? In my noncustodial wallet, like a Trust wallet or anything else, can they still seize them? I mean, if the scammers were holding these funds in some wallets that allowed Tether to seize them even before they got mixed with other clean USDTs.
That's insane I would love to know more if anyone could explain it to me. Besides it, it's a good thing that they helped the government, and till now they seized a big amount of money, like $1.8 billion, which is a big amount.
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I did not know before Tether could seize USDT. I mean, how, can they seize any USDT, like if I have $100 in USDT? In my noncustodial wallet, like a Trust wallet or anything else, can they still seize them? I mean, if the scammers were holding these funds in some wallets that allowed Tether to seize them even before they got mixed with other clean USDTs.
That's insane I would love to know more if anyone could explain it to me. Besides it, it's a good thing that they helped the government, and till now they seized a big amount of money, like $1.8 billion, which is a big amount.
Let me elaborate. While cryptocurrencies operate on public blockchains, accessible to anyone without permission, USDT is unique. Created by Tether, it leverages blockchain technology primarily for its protocol, giving Tether full control to modify it as needed. This means Tether can blacklist specific addresses, preventing them from interacting with their protocol to move tokens.
As a profit-oriented investor, I support Tether decisions, even if they seem to contradict the decentralized nature of the market. Tether collaboration with governments ensures its survival and helps to dispel the notion of crypto as a haven for illicit activities. Moreover, USDT enhances market liquidity. Tether existence and cooperation have positively influenced the legal landscape of crypto, and I acknowledge these contributions.
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As a profit-oriented investor, I support Tether decisions, even if they seem to contradict the decentralized nature of the market.
Tether does not even contradict anything, the crypto market or industry isn't decentralized in general, there are also centralized coins too, and usdt is one of them. If people want to enjoy the benefits of decentralization, then they should use a coin like BTC. Usdt may have some advantages in the crypto network, but i will not recommend that one should store it for the long term.
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As a profit-oriented investor, I support Tether decisions, even if they seem to contradict the decentralized nature of the market. Tether collaboration with governments ensures its survival and helps to dispel the notion of crypto as a haven for illicit activities. Moreover, USDT enhances market liquidity. Tether existence and cooperation have positively influenced the legal landscape of crypto, and I acknowledge these contributions.
And to be honest, this is probably the only way that Tether can survive, specially in US
I can imagine if they refuse any cooperation, government will sure close their operations
So, if we disagree with tether, best thing to do is use another stable
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I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think?
It's nothing new, Tether have been doing that for many years.
is Tether's attitude right?
From perspective of their survival and growth, it's right. Otherwise, they would face more pressure from government.
Do you trust USDT to hold dollars?
Not for long term, due to some controversy. And since USDT is controlled by Tether, using Bank is probably better option since you could get FDIC insurance.
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Not for long term, due to some controversy. And since USDT is controlled by Tether, using Bank is probably better option since you could get FDIC insurance.
The problem with leaving it in the bank is that you need to convert crypto to fiat and it can generate taxes or obligations depending on the country you live in.
I only convert when I really need the money
What I've been doing to hold dollars, which are few (most of them are in BTC) is split in USDT and USDC
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Let me elaborate. While cryptocurrencies operate on public blockchains, accessible to anyone without permission, USDT is unique. Created by Tether, it leverages blockchain technology primarily for its protocol, giving Tether full control to modify it as needed. This means Tether can blacklist specific addresses, preventing them from interacting with their protocol to move tokens.
OMG I did not knew they have full control on our USDTs and they can do whatever with them, like move them to another address? Or just seize them? You just opened a whole new curiosity in me by saying yes haha. I will learn more about it now it seems interesting and unique. Actually, I never come to face any topic like this so it's my first time knowing this information.
As a profit-oriented investor, I support Tether decisions, even if they seem to contradict the decentralized nature of the market. Tether collaboration with governments ensures its survival and helps to dispel the notion of crypto as a haven for illicit activities. Moreover, USDT enhances market liquidity. Tether existence and cooperation have positively influenced the legal landscape of crypto, and I acknowledge these contributions.
I agree with you as Tether if they have all the control then they can cooperate with the government and can ensure a successful future that's how the world works, they even made Durov comply with them by changing the Telegram policies.
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OMG I did not knew they have full control on our USDTs and they can do whatever with them, like move them to another address? Or just seize them?
Tether has control of all usdt in circulation, just the way centralized services control the funds on their platform, the thing with usdt is that tether can confiscate your usdt even if you have it stored in your own wallet. Like i have already said, i will not recommend that one should store usdt for a very long time, not only for this reason, but because i don't believe that all usdt coins are backed 1:1, there'll definitely be many that are issued out of thin air.
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(https://i.ibb.co/g6m73Zv/Screenshot-2-10-2024-82532-www-dlnews-com.jpg) (https://ibb.co/d7jcr4b)
Source
(https://www.dlnews.com/articles/markets/tether-teams-doj-freeze-six-million-usd-crypto-scam-proceeds/#:~:text=Tether%20recently%20assisted%20the%20US%20Department%20of%20Justice%20(DOJ)%20in)
I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
How did tether find out fast enough to freeze the funds?
To me if tether was really fast and truly did this the scammers were stupid as they needed to offload the coins faster into other coins that can not be frozen.
Do I trust tether? Not really.
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Tether has control of all usdt in circulation, just the way centralized services control the funds on their platform, the thing with usdt is that tether can confiscate your usdt even if you have it stored in your own wallet. Like i have already said, i will not recommend that one should store usdt for a very long time, not only for this reason, but because i don't believe that all usdt coins are backed 1:1, there'll definitely be many that are issued out of thin air.
I can't agree more with you because I also think there are USDTs that are not backed by a 1:1 ratio because the supply itself is in trillions, while I doubt they have that much funds to back it, and just now I heard the news that the European Union has banned USDT due to a compliance issue which is not good news for USDT, but with the strong political background they will come up with something to support their project.
From now on I will not save my funds in the form of USDT as who knows if one day the plan to seize or confiscate our funds or whole wallet just because a red-flagged address has sent dirty funds to my account even the $1 can cause some problem. We should look for alternative stable currencies.
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I can't agree more with you because I also think there are USDTs that are not backed by a 1:1 ratio because the supply itself is in trillions, while I doubt they have that much funds to back it,
Yeah, i am sure the U.S dollar they have in their reserves cannot cover all the usdt coins that are in circulation, there would be a lot of their coins that are circulating out of thin air. Now imagine something happens to the issuing company, Tether, there would be a lot of liabilities that they would be unable to cover.
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...
How did tether find out fast enough to freeze the funds?
To me if tether was really fast and truly did this the scammers were stupid as they needed to offload the coins faster into other coins that can not be frozen.
Do I trust tether? Not really.
Hard to know exatcly what they did to freeze these coins, but I have a clue
Read this:
The scam in question involved fraudsters mimicking legitimate platforms to deceive investors, funnelling funds into illicit wallets.
This sentence in the news makes me believe that it wasn't just a hack and that they discovered it quickly
Possibly they had been under investigation for some time and waited for the right moment to freeze the funds, and they were in USDT rather than any other coin
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To me if tether was really fast and truly did this the scammers were stupid as they needed to offload the coins faster into other coins that can not be frozen.
It is very possible that the scammers do not know that Tether can be frozen, even if you store it in your own wallet, some of these scammers do not really have great cryptocurrency knowledge. If they knew, they might have moved the funds into other coins, it is similar to scammers who steal and move the funds into centralized exchanges or custodial services.
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(https://i.ibb.co/g6m73Zv/Screenshot-2-10-2024-82532-www-dlnews-com.jpg) (https://ibb.co/d7jcr4b)
Source
(https://www.dlnews.com/articles/markets/tether-teams-doj-freeze-six-million-usd-crypto-scam-proceeds/#:~:text=Tether%20recently%20assisted%20the%20US%20Department%20of%20Justice%20(DOJ)%20in)
I saw this news and we all know that Tether is following the line of helping governments to stay out of trouble.
What do you think? is Tether's attitude right? Do you trust USDT to hold dollars?
they did the right thing in my opinion it is not like they randomly stopped operations and froze funds of a random person the account or the funds are involved in a scam they did all of us and the government a favor we know that usdt is not totally decentralized anyway and they have the right as well as the responsibility to make sure that everyone is safe as well as their funds and they would want to adhere to government policies as to not get into trouble
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"Crypto-confidence scheme" sounds to me like the classic investment scam, where the user wires a transfer to a bank account and the scammers convert the balance to USDT.
Of course Tether had to get involved here, because it was legally required to, but I can't help but think why don't these dimwits use a more censorship-resistant cryptocurrency for payouts like BTC or XMR.
(don't get me wrong though, I am happy that their lunacy leaves them out of pocket)
When we thought that criminals are not that stupid, however, one mistake, and then all of them fall. Maybe they thought that Tether is a anti-government entity. That it will not help or aid them if they requested that those funds be frozen because it come from a illicit activity.
So I guess the next time that they are going to hit, or at least those criminals that might pull this stunt again, they will not used Tether again, but most likely convert it to XMR or BTC so that it will be harder to trace. And by that time they've broken it, gonna be too late as they already cash it out.
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OMG I did not knew they have full control on our USDTs and they can do whatever with them, like move them to another address? Or just seize them? You just opened a whole new curiosity in me by saying yes haha. I will learn more about it now it seems interesting and unique. Actually, I never come to face any topic like this so it's my first time knowing this information.
I agree with you as Tether if they have all the control then they can cooperate with the government and can ensure a successful future that's how the world works, they even made Durov comply with them by changing the Telegram policies.
As far as I know, Tether has the authority to freeze USDT belonging to criminals at the request of a court, then transfer these funds to the police for victim compensation or into government coffers. This is a necessary step for Tether to continue operating and refute accusations that crypto is used for money laundering.
While we desire anonymity and decentralization, sometimes trade-offs must be made to foster the growth of the crypto market. The internet, despite being heavily regulated, remains widely popular and continues to provide immense value to users.
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"Crypto-confidence scheme" sounds to me like the classic investment scam, where the user wires a transfer to a bank account and the scammers convert the balance to USDT.
Of course Tether had to get involved here, because it was legally required to, but I can't help but think why don't these dimwits use a more censorship-resistant cryptocurrency for payouts like BTC or XMR.
(don't get me wrong though, I am happy that their lunacy leaves them out of pocket)
When we thought that criminals are not that stupid, however, one mistake, and then all of them fall. Maybe they thought that Tether is a anti-government entity. That it will not help or aid them if they requested that those funds be frozen because it come from a illicit activity.
So I guess the next time that they are going to hit, or at least those criminals that might pull this stunt again, they will not used Tether again, but most likely convert it to XMR or BTC so that it will be harder to trace. And by that time they've broken it, gonna be too late as they already cash it out.
yeah six million is 100 btc. you could have set up 50 btc addresses with 2btc each. then move one into xmr then move the xmr back to btc.
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As far as I know, Tether has the authority to freeze USDT belonging to criminals at the request of a court, then transfer these funds to the police for victim compensation or into government coffers. This is a necessary step for Tether to continue operating and refute accusations that crypto is used for money laundering.
While we desire anonymity and decentralization, sometimes trade-offs must be made to foster the growth of the crypto market. The internet, despite being heavily regulated, remains widely popular and continues to provide immense value to users.
Yeah to work properly in the USA they have to comply with the rules of court otherwise they will be the ones who get seized by the government and also it's not good for a company to seize someone's funds without any paperwork and without any solid reason. There must be a proper procedure to it and it must be quick one because hackers don't wait after getting USDTs.
You are right we have to compromise on one thing to get other features and the example of the internet is a good one. Even if its only regulated in not most of the world because there are layers in it that have made us to remain anonymous and we might do the same in the crypto world if they don't go after such tools or layers.