Stop excusing Bitfinex just because it’s 74% backed and other banks are less backed

First and foremost, Tether is not a bank and never claimed to be.Second of all, most banks don’t lie to you about how much they’re backed. Fractional reserve banking exists but banks are upfront about it. Bitfinex/Tether CLAIMED to be backed 1:1 and did not disclose this to customers. This is by every definition fraud.Lastly, in most banks (don’t give me rare counter examples), your money and withdrawals won’t be stuck for months as was the case for many on Bitfinex, since they have regulated insurance policies and larger central banks backing them.Don’t forget that even now, the claim that they are 74% backed could also be false just like their last claim. Who knows what the real backed amount is. What they committed was fraud and it’s upsetting to see some people justify this just because it may affect Bitcoin’s price.

Submitted May 01, 2019 at 06:29AM