In the last few days, the FED announced via a note, informing the public of what is necessary for the CBDC and what to expect. To boil it down, they state a couple of interesting issues. 1) legal mandate, 2) absolving themselves from responsibilities, 3) creating the demand, 4) breaking habits.

To not waste any time of the reader, their main focus is on creating the right conditions (demand), and Powell believes there is a lot more ‘work’ to do to create those conditions! If we go by last year's events, we can see they mean there needs to be more work on making people poorer and desperate to create the ‘right’ conditions. This is a very big focus for them and they are deadly serious about bringing in their direct control mechanism but they recognize people are not totally stupid, and no one trusts the central banks, so they have an uphill struggle to get anyone to accept their horse shit.

They also state for anyone paying attention that there is no legal mandate to force buyers and sellers to use any specific currency, including their new CBDC currency as legal tender. They are obviously salty at BTC and crypto’s arrival with the ability of private entities to issue tokens, ICOs just as stock share certificates are issued (without paying their bribes) and the FED issued USD, by creating fractional value tokens and currencies privately. They are really worried that decentralized stable coins such as DAI, USDC, etc. are competing with their control and monopoly on issuing free money because people actually prefer crypto after trying it on mass.

Young people especially those who are not so habitually affixed to using USD cash and traditional banking cards realizing out of the gate that crypto has advanced features, better interest rates, easier access points, better tech, and a whole remit of better features that they find attractive. Not least the developers are not warmongering criminals who have for hundreds of years exploited the ignorant public with their war crimes.

But the kicker announcement will be in the decentralized blockchain feature would not work for the transaction volume of the USD that requires higher throughput so a standard centralized database subject to the full central control feature is necessary. You know, because blockchains cannot do fast nor high volume transactions and centralized chains can offer full direct control!

Absolving themselves from responsibilities, they claim the ‘standard’ treatment of endpoint to endpoint participants will not be subject to operations responsibility. That means in plain English if someone steals your house, you are on your own, but at the same time, if someone doesn't pay them their tax, they will have the ability to ‘legally’ impose sanctions and enforce those sanctions (cut you off totally or impose direct theft and extortion).

So are you ready for the new Central Bank Direct Control? Imagine all the new features they will offer you; it is centralized, they can now trace all your spending, make sure you pay all the extortions, and they can sanction you by limiting your access to any services that require full payment in their currency? Want to use a public hospital, or pay a dentist, or use a school, make sure you are fully up to date on all the requirements of the CBDirectControl grid, which issues mandates by law like your business is not essential and you are not essential.

Just remember this is for the good of everyone, where we go one, we go all, right?

Let’s presume that USDT is unbacked, which means that Pablo and Julian have printed unbacked USDT, bought BTC, sold it for USD, and have cashed out buying up property now living on the moon at your expense.

What does that mean, it means that they got to spend the USDT and they now have a benefit from society as they didn’t earn that value. But everyone else in the community has to actually work to make USD. Now everyone else is subsidizing Pablo and Julian's fancy lifestyle. They got a bonus but no one else did. OK, so we're all pissed they got to spend the money that they never had and it's not fair, so we would prefer USD to be real USD, second hand and backed by real sweat. However, let's look at another scenario:

The CBDC Model:

Here, your friendly (NEVER CAUSED A WAR) Central bank prints fresh USD, they then buy bombs and GIVE THOSE TO SOMEONE ELSE TO try to kill EVERYONE under themselves because they want what you have, your daughters, your business, and your land. Sure that’s also an unfair advantage that society has given them. Both situations are bad, but which one do you choose if you have to choose one?

The guys with the forced Vaccines. Or the thousands of guys creating the decentralized financial system that has thousands of tokens, each of which also has the ability to print USD from zero. Every token is a fractional reserve token!

Tokens are digital share certificates that are based on the fractional reserve model. Just like traditional banks, Fiat Cash, and traditional stock share certificates, all of these paper assets are the same, they are bubbles based on fractional reserves trading pairs between two currencies. Now you can play in one of two gardens, 1) controlled by guys with guns, police, prisons, and quarantine camps who have a long history of profiting from WAR, or you can choose 2) the playing field whereby all of the guys controlling issuing the tokens are either scammers or are building technology with great ideas and creating a decentralized parallel monetary system which is not controlled by that angry central octopus who has a bit of a nasty streak in him and is dead set at the moment on getting everyone to take a Jab in the arse? Pardon my french but what's going on isn't cricket.

Even if you think Tether has 0 BTC or other digital assets or 0 USD. I would still choose Tether over the CBdirectControl that has its crosshairs on my forehead and is getting dangerously close to implementing full control on the planet globally with nothing but bad intentions, shutting down all businesses that are nonessential and forcing masks on people who are healthy. Are you nonessential? Do you know your history? Do you know your enemy? If you are still in the dark as to the choices in front of you spend one hour informing yourself of history and start to ask some questions that might actually end up saving your life.

The best-case scenario would be that Tether is backed by some crypto assets and is more or less like DAI, as long as they hold the peg the only ones being cheated are the whole crypto economy by about 10% of the total market value, but at the same time Tether has apparently if we are to believe the naysayers manipulated the prices of BTC and all crypto much higher than that, so Tether has created more value than they have taken from the community. So who is the scammer? The CBDirectControl whereby the price of Gold has remained stagnant throughout the entire pandemic and global lockdown or Tether backed BTC which has risen by 10x?

Now if you are still confused I would implore you to do a history lesson and then a biology lesson and we can come back to the economics lessons thereafter.

When I first wrote about Tether in 2017 the situation was very different, Tether was being banked by a non-bank entity known as Cryptocapital while since that time Cryptocapital has MELTED away, Deltec bank (a real bank) has emerged, and Tether is officially now banked by a ‘real’ bank which operates like all ‘real’ bank’s around the world, and most likely all exchanges using fractional reserves. While the crypto market has been through a down cycle and is currently enjoying an upcycle with BTC > 40K as I write. But while all the Bitfinex/Tether critiques such as Bifinexed, David, Amy, Trolly, etc. have continued apace highlighting the inconsistencies with Tether not providing proof that they have reserves to match the now staggering > 30B USDT in circulation. I have a question for you, are you being fully honest?

The world we live in has changed, Central Bank Direct Control (CBDC) is around the corner, Forced Covid lockdowns has killed independent businesses in the ‘real’ world, while private central banks have printed more USD than previously existed (globally), putting the majority of that new currency in their cronies debtor's pockets, while people are being vaccinated at alarming rates with God only knows what, no animal testing ensures catastrophe there, and all the Tether Critiques can point to is that Tether is also printing woohoo.

If the peg (USD) prints and you don’t, and you're trying to peg to them, who is cheating who? You can only maintain a peg if both sides print. It's not just about how many USD are now in crypto, it's also about how many USD there are in the world. That’s just basic logic.

I find it incredibly disingenuous that the Tether Fudders have such a warped perspective of fraud, that if you think the only fraud in the world is in the crypto market, and that central bank printing is normal, legal, OK, acceptable, or necessary, and that Tether printing is not then I call that hypocritical. Such double standards are suspicious and there is either cognitive dissonance at play in their minds or they are totally ignorant of economics, financial fraud, or the wider scams being perpetuated right now.

There is also the possibility that some Tether fudders are actually working out an agenda, and are literally paid to create the Fud by the Private Central Banks who are clearly panicking that they have lost the utter trust of the public and are racing to cripple the global economy in age-old tried and tested effort to remain relevant by gaining control through WAR. While making fertile ground for the 666 patented Gates ID2020 Mark Of The Beast with the Central Bank Direct Control (CBDC) system that is about to be launched globally with the assistance of central bank controlled MIT, that system comes along with the new feature ‘requirement’ of usage that your browser history and online social media accounts do not contradict the ‘official narrative’, whatever that is while ‘they who now hide’ have designated hate speech as anything that questions vaccine safety or them. Are you kidding yourself or is that not normal?

Theirs not to make reply,

Theirs not to reason why,

Theirs but to do and die.

IF you think that what is going on in the world is wrong, and you recognize that the private central banks are guilty of profiting from both sides distress, classic Divide and Rule, then you have to acknowledge that this is a war between good vs evil, whereby the decentralized is good and centralized is the evil, and if you cannot see that, you must believe in slavery. There is no other way to visualize this logic.

If you are a Tether Fudder now, the problem you are actually complaining about is the current economic model, whereby central entities such as private central banks or ‘Tether’ in crypto, or APPLE, or TESLA, can print digital share certificates and manipulate the market to trade them with elastic prices. This is how the current economic model works globally. Tether is not doing anything different, illegal or immoral if you accept and believe that central entities such as “PRIVATE” central banks can have a monopoly on printing money, and they have the gall to actually charge interest on that! Yet crypto comes along and private entities figure out how to copy the same logic, (Tether), and you pipe up and claim for the first time it’s morally wrong. Why? No bank? they fixed that! What no audit? Show me the audit of the Frauderal Reserve. Show me the Audit of ECB or Any so-called private central bank such as the Japanese or Chinese central banks.

You know why there has been no FINCEN alert on Tether or Deltec, or why the NYAG is dragging their feet? Because their ‘argument’ is erroneous, they accuse Tether of not having money that was stolen from them by their ‘authorities’. You cannot steal the reserves then seriously make a case they were trading unbacked. The reason any other 4 letter agency has not put a warrant out for all their principal's arrest or has designated what Tether is doing as illegal? Because it would expose the scam that the Frauderal Reserve is doing, along with all the other private central banks and the central-central Bank of International Settlements that sits at the head of the central octopus along with the World Bank, The IMF, and all the other AGENCIES OF THE CENTRAL CARTEL.

Tether has remained in control of the 1–1 Peg, Tether has not let that drop, it holds on despite bull market and bear markets. Yes they use it to manipulate the prices on exchanges, and yes exchanges are corrupt or immoral and trade against their users, as do exchanges in the FIAT share world cough cough (Robinhood). But that's not the way this game works, exchanges use flash crashes to recoup profits from speculators and shake out weak hands, this is more profitable than letting that USD peg go. Just like the FED threatens to print into infinity, Tether can do the same, it’s a number on the screen in the meantime that goes up, on both sides of the digital divide be that of the centralized or decentralized world view.

I applaud Bitfinex and Tether for taking all the grit they have, for not running away when they got hacked, for defending themselves against me and the other fudders who have for years been at them, accusing them of wrongdoing. For not running away when they got sued by a bunch of people who blamed them for the price of BTC going down but were super ignorant when the price was going up (good luck with that argument). Tether is allowing development to continue, and expand decentralized offerings (thank you ETH and Metamask) they are supporting, independent developers and the ecosystem by just remaining to be there, and yes by keeping up with the Fraudural Reserve.

Do you know what is wrong? Tether had 400M USD confiscated in Poland that had been deposited in a ‘real bank’ that basically was seized under some erroneous allegations that have never been supported publicly, allegedly complaining that it was mafia cartel money. The money was never returned - that was wrong! You know what else was wrong, we were calling Tether out when the circulation was under 1 billion and saying look this could go wrong, while they actually had at least 500 Million stashed cash in a real bank. If I was running Tether, sure I would switch to buying digital assets to back Tether, assets that were run by real companies in the decentralized space, my first choice would be to invest in decentralized messaging and social media (status.im), and decentralized lending, borrowing, and decentralized Parachains. Layer 0 chains. Why? That is the future that's why. Not these dinosaurs who have made their wealth from war and blood.

When your choice is to put your money into a legit bank and have it ‘legally’ seized or to buy decentralized tokens, that don't ask you a million questions before you can buy or sell, or instead let them control your spending with the 666 Mark of the beast - ‘health certificate’ that sits in your arm with the central bank direct control (CBDC) which forces you to shut your mouth on social media for fear of upsetting Moloch, or finding that the artificial intelligence 5G termination station just decided to turn off your life support!

There is a lot wrong with the world right now, but Tether printing is not the issue we have. The main issue we have is Central Bank Direct Control and no one is talking about the dangers of this. When schools in the UK implemented fingerprint control on vending machines to buy food and drink, no one in the schools objected, not the children, nor the teachers, nor the parents. When the Central Bank Direct Control was announced, no media debated it, but rather it was announced as part of the new normal, and something coming that we need to adapt to. We are all walking in the dark squabbling over finger-pointing at low-level fraud but if war is perpetrated by those who are behind the curtain’, then not an iota is mentioned. You are about to embark on Germanwings Airbus A320 and this guy is telling you something you need to hear!

The central bank's repeatedly have a wet dream where Tether drops the peg, that they can use that argument to muzzle and intimidate the crypto space with (FUD) new regulations, thereby making their own unstable token called the Central Bank Direct Control (CBDC) the one and only unstable token in the world, keeping the public encaged, and enslaved another 100 years. Wake up. Wake up. You just wet the bed, and your slaves are running away!

STOP THE TETHER FUD! START POINTING THE LIGHT AT THE CBDC FED!

You can check that status:

Twitter Shadowban Test

My former account:

Twitter Shadowban Test

My former account untetherbtc is completely blocked and I have no access to that account. I’m totally locked out and have lost access to my Twitter followers. My Twitter appeal has gone unanswered and I find it slightly suspicious that people who are involved with exposing BTC fraud and who are skeptical towards the crypto ‘industry scams’ are being so clearly targeted and shut down by Twitter in this way without any due process or any rationale other than for the reason being the content we produce.

I have a new Twitter account now, for as long as this may last, any former or new followers may follow there:

https://twitter.com/untetheredbtc

It’s also worth noting that Bitfinexed, one of the leading Tether Skeptics was also formally shadowbanned co-incidence? you decide!

Controversial tweeter Bitfinex’ed has been shadowbanned on Twitter.

Despite the most absurd statements being made by the CBOE that there could not be price manipulation in BTC:

“The CBOE Exchange believes that the underlying reference asset is not susceptible to manipulation because the nature of the bitcoin ecosystem makes manipulation of bitcoin difficult”,

there is an extremely strong potential for conflicts of interest which could easily collude to manipulate the BTC price within the current so-called ‘decentralised network’ that makes up the elements that set the price of BTC.

There is a common misconception behind so-called ‘decentralised networks’ like bitcoin, that because bitcoin miners (computers tasked with responsibility to ensure the ledger (who owns what) remains true) are decentralised that bitcoin itself in all aspects is decentralised. Yet that is not true by any means. There are clear distinctions between the ledger accuracy and ensuring that colluding parties are unable to affect the price of each unit of account.

In fact, the centralised nature of one entity which could collude to affect price, should be of grave concern to all BTC participants. There is one particular entity with enough influence and power who potentially can collude with the majority of unbanked grey market exchanges and who has the capacity to conspire in deciding the production of Tethers and the price these enter the market, who has also invested in third party ‘Locks’ (which convert BTC to Tethers on participants unwittingly) and there propagation via Coinapult, into Mycelium, Safello and Dash. That power gives them the unique ability if they should desire to collude with these market players who together are largely responsible and provide the tools which control the market demand and settlement of the BTC/USDT/USD spot price.

Of major concern here is the relationship that exists between the CME and DCG (Digital Currency Group), since the CME are a noted investor in DCG, and DCG have their hands and money behind almost every regulated exchange and directly own the company which sets the underlying reference rate for the BTC futures, and of the (constutitent exchanges GDAX(Coinbase), Kracken, Bitstamp, Ibit,) Bitstamp is the only company not controlled by DCG, though more concern is the relationships DCG have that surround the unregulated unbanked markets that utilize Tether Tokens in replacement for “real” USD.

These grey market exchanges have been a hornets nest for pump and dump price manipulation and have struggled to survive at the epicentre of bitcoin scams. There has been widespread notable hacking “events” and blatant theft from insiders that have resulted in complete loss for those market participants.

The recent Tether scandal (centralised 3rd party digital dollar tokens) has been so widely reported now that if you are involved in bitcoin and are NOT aware of the obvious and market led potential for BTC/Tether price manipulation then you are maybe suffering with cognitive bias.

The conflict of interest here involves DCG investments and partnerships into people and companies that often are so closely associated with Tether and its distribution, along with protecting Tether in the press, that begs the question are DCG not directly involved with the propagation of Tether and profiting indirectly from the trading fees that are accumulating as a result of the huge gold rush resulting from BTC mania attracting millions of new unsophisticated speculators into BTC.

DCG own blockstream for example, which is also owned by Bitfinex. Bitfinex are the exchange at the heart of Tether distribution and directly they own Tether. That is a direct conflict of interest which is also shared by DCG accountants Freidman LLC who are also shared directly with Tether, Bitfinex and DCG.

The fact that the CME have invested into DCG and are therefore indirectly connected to any such price manipulation should ring more loudly for regulators but these conflicts of interest were undoubtedly known about before the futures were listed (none of this is new news). What begs the question is how many more conflicts of interest lurk behind agendas and investments which cloud the authenticity of the market participants who typically profit on high trading fees on exotic exchanges and unregulated financial products.

Because Tether tokens are not backed by USD, they act as an artificial market buyer of BTC while already having acquired over 1 Billion dollars worth of BTC, at prices that are unpublished, further their BTC holdings are unknown and if they are selling off BTC on USD exchanges they will be again affecting price (on the sell side) while taking on highly risky market positions and acting as a fractional reserve. Given Tether do not list any prices on their own site, instead Tethers are distributed in bulk to other participating unbanked exchanges and on Bitfinex where the price at which they enter the market is then set by these entities, many believe it is this so called liquidity that is currently artificially inflating the price of BTC!

These issues should be of concern to BTC speculators and its related ecosystem and the paramount question one needs to ask is who’s interest is being best served by the potential collusion of this entity and are they acting in their own self interest... or acting for the benefit of all.

Allegations which once dogged the silver and gold markets (that the manipulated futures markets leads price discovery causing artificial pump and dumps in precious metals), now an even worse fate is leading BTC price discovery. The masters behind Tether.to-ken are leading the price discovery of BTC and Tether acts as a centralized ‘bank’ with an unknown trading POLICY.

The most important question facing all BTC / USDT Holders should be:

”What Is Tethers Trading Policy”?

The notion that BTC spot price is driven by free market price discovery is absolutely false. The vast amount of BTC trading volume and price ‘discovery’ happens in and on the grey market that is totally unbanked. The shadow grey market does not have access to real USD banking, instead it uses a fake proxy ‘price peg to USD’, known as Tether Tokens, misleadingly referred to as USDT or more often just USD in the most popular wallets and grey market exchanges. Bitfinex, Mycelium, Dash, Safello, and many more.

Tether business motto known internally as ‘FAKE IT UNTIL YOU MAKE IT’.

In a quest to legitimize crypto currencies globally and drive mass adoption through greed, there is a conspiracy playing to a vulnerability shared by the most unsophisticated market participants, who are most avidly searching for ’how to get rich online’. The Tether.to-ken and the cohabiting market participants led by the pied piper of the Omni protocol Craig Sellars is leading the march forward in cohorts with partners in crime Bitfinex where price ‘discovery’ is often leading that of all other fiat exchanges by sometimes thousands of dollars and greater than 5%. The BTC/USDT spot price on Bitfinex is higher than the BTC/USD spot price on fiat exchanges, thereby attracting new money into their fractional reserve system which also boasts lower trading fees and access to more trading pairs and traditionally less KYC.

In order to understand how Tether artificially sells USDT for BTC at higher prices you first need to understand that if Tether didn’t constantly participate in the market, i.e. sell USDT to often unsuspecting buyers then the market participants who wanted to trade BTC/USD would negotiate and arrive at a different ‘market’ price. A market price is set by the participants, only those who have the commodities can trade them, if one or more participants are removed then the market price changes. If one market participant has deeper pockets and more appetite than the others then the price moves with him being the market maker.

Lets imagine Bob has a strong desire for BTC, Bob runs a fake ‘central bank’ which prints counterfeit USD. These counterfeit dollars are just like the original USD but he has replaced the S/5 to U5D, just like the counterfeit goods you see in scummy illegal ’markets’ they look almost the same but there are a few tiny little details that are slightly different.

Bob wants to get as many BTC as possible and does not care how many fake U5D he prints to get his hands on them, he is fearful he will be put in prison anytime and he’s in a bit of a rush, so he stands outside the BTC mine where all the BTC are made and he starts shouting at the miners, “rollup rollup”, “I’m paying 10% more than anyone else, what say thee?”. BTC quickly flows into his hands. Some people complain that the fake U5D are a bit dodgy looking but Bob assures the miners they can buy drinks in the local pubs as most people don’t check. A couple of people come back to Bob with the fake U5D and want their BTC back, the first few are given BTC back at a much lower value, but soon Bob gets greedy, refuses to take them back and tells miners they can only offload these fake U5D to other people. Pretty soon Bob has printed over 1 Billion U5D and has a large stash of BTC. How much BTC does Bob have? What USD price will Bob accept for his BTC, will he sell it in exchange for U5D or will he want real USD. Who sets the BTC/USD price? What BTC price will miners trade these U5D among themselves?

These questions are instrumental to contemplate how Tether are manipulating the price of BTC/USD. Since they act on the buying side, offering higher fake USD prices in the market to unwitting BTC sellers, often who are not aware they will end up holding fake USDT. They also act on the selling side in legitimate markets, selling stolen goods (they are real BTC which they stole with fake money), in both instances Tether interact in the market place pushing and pulling the market ‘price’ in the direction they choose. By changing polices of buying or selling rapidly they can move quicker than other market participants, they also have greater market intelligence knowing when the news is favorable bringing money in and can see people moving out of the ‘market’.

Simply by issuing fake USD and exchanging them to unwitting participants they are affecting the BTC/USD price, else those same market participants would have found different buyers and sellers with different appetites and costs thereby arriving at different ‘market’ prices. Every single time Tether buy BTC they set the price, they are the market makers, while removing that BTC from the real marketplace, or selling those BTC in the market, again every time they sell BTC in the real USD market place they are the market makers.

Tether is persistently making the price and have done so over 1 Billion times. Every Tether that is printed and enters the market does so at the expense of some other market participant who’s price moved as a result.

Fake price pumps pushing the price of BTC to new milestones and reports in the media of new paper billionaires and hundreds of paper millionaires, trick the popular sensationalist mass media to reprint BTC/Tether propaganda “All Time High Bitcoin Reaches 10k USD(t)”. What is not being reported by the unsophisticated popular presses who are parroting these headline grabbing lies is that there is no free market USD price discovery at the heart of Bitcoin. Instead there lurks a centralized token proxy which has an unlimited printing press, which has magicked up over 1 billion fake USD in the last year to drive the price of BTC to greater than 14K USD.

The other real USD exchanges (as well as newly created futures markets) then set their prices based on this fake Tether lead price while benefiting from all of the ‘naive believers’ who come flooding into these markets with fresh USD wanting the opportunity to get rich quick, while unconsciously paying crazy high trading fees (the sort of fees not seen in equity markets for years), many of whom have never traded stocks or shares in their lives and such participants have little regard for risk or understanding the technology they are buying, during one of the biggest Gold Rushes the world has ever known. Millions of sheep are being rounded up ready for slaughter and are flooding into these markets not wanting to miss the opportunity of a lifetime, driven by their personal biases and distrust of central banks who have been letting the tide out ever since the printing press ‘revolution’ displaced gold backed money.

This frenzy and market mania has replaced critical thinking and the sub culture adopting these ‘digital gold’ assets, espouses a cult following around a popular meme in Cryptoland known as ‘Hodl’. Reports of people making millions of easy USD is driving these market chasers who don’t care about risk or the cost to participate or enter into this fake ’market’ as long as they get to play the game as well, buying in with real cash ’not fake tether tokens’, they are promised to make money, as long as they don’t look too closely at the trading fees, or care too much about being hacked or exploited by market fraud, or taken out by flash crashes or pump and dump market manipulation. In fact the more market manipulation the better. “I want market manipulation too” if this is what is pushing the price up, many claim.

Calling attention to the obvious fraud is treated as a potential threat to everyone in the party thereby spreading FUD. No one wants the music to stop. Hostility and discreditation await any calm voice alerting of fraud that questions the legitimacy of price discovery process that is driving the market mania and attracting fresh money into this system.

Everyone has heard the old conspiracy “Give me control of a Nation’s money supply, and I care not who makes its laws” but the modern day equivalent of that meme is “Give me 10% of every Tx and I will care not how you set the spot price or who prints the Nation’s money supply”.

Who cares about 10% trading fees when these paper ‘profits’ are in the thousands of percents and continue to be reported and there are thousands of new paper millionaires. The new poster boys ‘Winklevoss’ billionaires take ‘The 4-Hour Workweek’ to a whole new level, setting new standards others try to emulate. Other early adopters and cunning investors like Roger Ver and Barry Silbert show by example that if you too convert into digital gold cryptotokens you will be rich. Why adopt a more sophisticated strategy. Why look too closely at any of the details. It’s all so complicated that even these icons of the industry apparently also don’t understand it anyway so what chance have you got. As long the masses can be bedazzled with notions of magic money conjured into existence, with the illusion that real money, in this case ‘USD’ (I know the ironies) are going to magically appear in their wallets and account balances right next to their names sometime soon then this party can continue until the rot sets in.

There are real (not fake) risks with this market manipulation which could stop the music:

1. The actions of Tether/Bitfinex would without doubt be considered totally illegal in any regulated market, breaking all sorts of regulations and laws, not least counterfeiting the USD.
2. DCG has direct ties to all of the market participants that are profiting from the trading fees of all the new money (unsophisticated) that is entering this market. From exchanges such as Coinbase and Gemini to the futures markets and price fixing in both CME and CBTC.

There is evidence that CME who invested into DCG are indirectly and illegally involved with Tether/Bitfinex though there association and investment into DCG which owns stake in Blockstream which Bitfinex also invested into and are colluding with these market participants as market makers to control and profit from artificial BTC prices. There is strong possibility that the SEC will file charges against Barry Silbert based on insider trading and market price manipulation Via Tether. There is already smoke in this direction following market calls he made in Ethereum classic price calls on Twitter.

There are strong ties between the people and projects Barry Silbert / DCG has previously invested into who are closely affiliated with projects connected to Bitfinex and Tether. There rumors and claims by Bitfinex to have investments with Blockstream, and Tether joining DCG and Tether.

There are links between Freidman LLC the accountants commisioned by DCG, who are also shared by Bitfinex / Tether. A whistle blower within Freidman could expose collusion but that us unlikely because Friedman LLC have a direct conflict of interest being contracted by market makers and price manipulators Tether/Bitfinex and DGC who largely profit from trading fees and volatile price movements. There is a direct conflict of interest on behalf of Friedman who have insider knowledge in Tether market manipulation having access while auditing their accounts, and having direct connections with CMOE through their investments into DCG which profit from price volatility.

There are strong signals of collisions in media outlets that DCG own such as Coindesk who act as a mouth piece for Bitfinex / Tether and there is allegations that Coindesk are looking the other way and failing to report on Bitfinex market manipulation and flash crash oddities.

Coinbase are finding it highly profitable processing all the new unsophisticated ‘investors’ flooding into this market on the back of fake price news generating high trading fees, no matter what price BTC is bought and sold for, Coinbase rake in 7% of that trade volume. DCG (Coinbase investors) are primarily placed to exploit these trading fees with along with DCG via Cryptofacilities setting the BRTI rate for futures contracts.

Not last and not least the market is getting wise to the fact that Tethers are fake, worthless and are rushing to exchange to USDT for BTC, this will move the price of BTC up and down rapidly as market participants clamber for BTC and at the same time back into real USD. Whichever charge is greater will set the volatility of these trading pairs.

There is an open campaign which started on the 2nd January 2018 to inform unsophisticated bag holders to get out of USDT and back into Cryptos. This is is known as the External Tether Audit and was driven by community frustration that Tether has not provided any USD/ BTC audit or insight into their trading strategy thus exposing bag holders of USDT to huge market volatility and risk while also failing to redeem directly USDT for USD which is claimed to be the backbone holding Tether.to the USD peg.

The opportunities to get out of USDT at the rates advertised are fast coming to an end and the rot is starting to gain a stranglehold over the market makers and those conspiring to profit from this volatility.

The fundamental questions everyone should be asking about Tether:

What is the trading strategy of Tether?

How many Tethers will be printed?

How many BTC are held by Tether?

How much of the BTC Tether obtained illicitly have they sold off for real USD?

How many USD are Tether holding?

What is the institutional USDT/BTC price of bulk purchasers by cohabiting participants (how much do other exchanges pay) for Tethers?

Is Tether a for profit business or a central bank charity?

How does Tether make a profit?

Are Tether in the market or out of the market when prices are moving up or down.

Are Tether able to cause flash crashes or do they act to prevent flash crashes?

At what point will Tether stop buying BTC and what will happen to the price if they stop.

Do Tether change their buying and selling policy (pump and dumps) when and why?

Has Tether ever been tested to know how they will act if the price crashes more than 50%, will they convert their own BTC holdings supporting the price (buying their own Tethers back) or will they compete against other USDT sellers to buy more BTC?

Where are the bulk USDT prices published?

If Tether (or something like Tether) is a market necessity, desired by public demand to avoid price volatility of crypto assets and needed by unbanked grey market exchanges then the answers to the above questions should be transparent. The fact that Tether is a black box with deep connections to multitude of colluding companies who trade off of market volatility should be of grave concern to anyone holding USDT and BTC or any alternative crypto currencies. All of the crypto trading pairs are intertwined with BTC which is the market leader and every participant in this market has their paper wealth pegged to this market manipulation!

TETHER: The Tail Wagging The Dog was originally published in HackerNoon.com on Medium, where people are continuing the conversation by highlighting and responding to this story.

Specifically it has been noticed that CoinDesk.com has been absent to report any of the negative events stemming from Bitfinex’s waste basket. Some have called into question if there is a conflict of interest preventing negative events orchestrated by Bitfinex being covered by one of the most prominent news journals ‘ Coindesk’ online?

Lets see if there could be any conflict of interest…

Coindesk is a subsidiary of DCG, which is owned by Barry Silbert. Barry Silbert of the Bitcoin Investment Trust has a lot of regulatory concerns and cannot be “directly” associated with unregulated exchanges that may or may not be about to have financial trouble (such as Bitfinex) which also owns Tether. Nor can DCG be directly associated with Tether which is currently the focus of a lot of negative attention and concern: that they are not able to cover the USDT tokens issued with real USD, have never provided any audit, and deny redemption's directly as was once promised.

Of interest it should be noted that DGC use services of Friedman LLC, the same Friedman LLC that Bitfinex employed the services of when they felt pressurized by members of Twitter who were calling them out for printing un-backed Tethers (as reported by Coindesk).

Unsurprisingly it should be noted that Tether are also employing the services of Friedman LLC to conduct an overdue audit of their accounts. Apparently Friedman have been too busy last year to get it done as it is suggested that it may happen before the price of Bitcoin reaches 1million USD, which is scheduled for the end of 2018.

Conspiracy theorists may try and claim that despite these entities being connected by association of Friedman LLC, that Chinese walls prevent conflicts of interest which would typically prevent lawyers being engaged by opposing entities!

Factom $FCT, a respected company with recent funding from The Gates Foundation, on march 9th 2015 announced a partnership with Tether (archive) and on the 11th March 2015 a partnership with Coinapult (archive)!

Factom are a digital asset verification platform which confirm and attest to the value of assets under management by various parties to better coordinate compliance audits.

Factom Harmony Teaser from Factom on Vimeo

Given the serious nature of fraudulent claims levied towards Tether / Bitfinex and the dubious banking relationship exposed of Coinapult LOCK(TM), DASH, and Cryptocapital, who both have ongoing partnerships with Factom, legitimate questions surrounding the authenticity, accountability and validity of the Factom service have been raised.

What is Factom’s role in these partnerships?

Let’s assume Tether create fresh USDT, Factom can confirm, verify and vouch USDT are only exchanged and issued to Bitfinex ‘customers’ in exchange for BTC.

The risk here being the issuing party Tether/Bitfinex, could be directly buying BTC with USDT then selling those BTC for real USD on Coinbase. Why is this a problem? In such a scenario where Tether purchases BTC with newly issued USDT then sells these on Coinbase for real USD, Tether / Bitfinex can theoretically extract (clean-out) all the USD coming into Coinbase, bankrupting them in the process!

Open Questions To Factom About TETHER:

1) Can Factom confirm the continued partnership with Tether and if the partnership ended can you release a public announcement informing of the reasons for the breakdown of the partnership.

2) Can Factom verify that Tether has the amount of USD under management in the ratio 1–1 with issued USDT.

3) Can Factom verify that Tether and Bitfinex are NOT directly issuing USDT, themselves buying BTC then selling BTC on Coinbase (using proxy accounts), thereby slowly bankrupting Coinbase of USD?

4) Can Factom confirm that Bitfinex/Tether are holding the correct amount of BTC against customer claims and are not running a fractional reserve exchange holding less BTC than the total claims against them.

Open Questions To Factom About COINAPULT:

1) Can Factom confirm the continued partnership with Coinapult and if the partnership ended can you release a public announcement informing of the reasons for the breakup.

2) Can you confirm the LOCK(TM) assets held under management by Coinapult/CryptoCapital are in fact issued as Tethers and held as BTC.

3) Can you confirm how many BTC are held under management by Coinapult.

4) Can you vouch that the BTC held by Coinapult are 1–1 with the outstanding claims against them and that Coinapult/Cryptocapital are not acting as a fractional reserve.

There are huge risks for the entire crypto economy should Tether/Bitfinex be issuing USDT and exchanging via BTC, with USD on CoinBase (thereby bankrupting Coinbase — the most relied upon exchange for Fiat I/O.

There are huge risks for hundreds of thousands of people unwittingly holding USDT in various wallet services and exchanges via Coinapult Lock(TM) feature should USDT deviate from the 1–1 USD peg on the unregulated exchanges.

Given Factom have openly partnered with Tether and Coinapult and are respected members of the crypto community currently auditing these entities assets and claims, it is with great responsibility and immediacy that answers to these open questions be provided for the sanity of everyone currently exposed.

External TETHER Audit: 2 Jan 2018

@untetherbtc

OPEN QUESTIONS FOR FACTOM was originally published in HackerNoon.com on Medium, where people are continuing the conversation by highlighting and responding to this story.

1. Many accuse Bitfinex of manipulating BTC price by using unbacked Tethers to buy BTC.
2. Bitfinex own and control Tether.
3. Tethers (USDT) are not 1to1 backed by USD < 10%.
4. Bitfinex and Tether do not have reliable Fiat banking partners.
5. Tethers are unwittingly / unknowingly held by thousands of people in wallets via Coinapult Lock(TM) feature.
6. Bitfinex et el refer to USD instead of Tether.
7. The bank at the centre of DASH and Bitfinex is Cryptocapital which isnot a Bank!
8. Cryptocapital are unlicensed and uninsured, using entities as banking partners who are known criminals and scammers.
9. CryptoCapital offer services to many exchanges and are the same people behind Coinapult.
10. Coinapult claim to Lock BTC or DASH to USD, which is actually unbacked Tether USDT.
11. Coinapult Lock(TM) is incorporated into the Mycelium wallet as well as DASH, Safello and many others.
12. DASH have incorporated the unreliable fiat banking solution provided by the people behind Coinapult / Cryptocapital.
13. Roger Ver is very knowledgable about Tether despite claiming not to be since being an investor of Coinapult, Safello and Kraken all connected to Coinapult.
14. EXTERNAL TETHER AUDIT is planned for 2 Jan 2018!
15. EXTERNAL USD AUDIT is planned for 6 Feb 2018!

The basic claims made in this article:

1. Many accuse Bitfinex of manipulating BTC price by using unbacked Tethers to buy BTC.
2. Bitfinex own and control Tether.
3. Tethers (USDT) are not 1to1 backed by USD < 10%.
4. Bitfinex and Tether do not have reliable Fiat banking partners.
5. Tethers are unwittingly / unknowingly held by thousands of people in wallets via Coinapult Lock(TM) feature.
6. Bitfinex et el refer to USD instead of Tether.
7. The bank at the centre of DASH and Bitfinex is Cryptocapital which is not a Bank!
8. Cryptocapital are unlicensed and uninsured, using entities as banking partners who are known criminals and scammers.
9. CryptoCapital offer services to many exchanges and are the same people behind Coinapult.
10. Coinapult claim to Lock BTC or DASH to USD, which is actually unbacked Tether USDT.
11. Coinapult Lock(TM) is incorporated into the Mycelium wallet as well as DASH, Safello and many others.
12. DASH have incorporated the unreliable fiat banking solution provided by the people behind Coinapult / Cryptocapital.
13. Roger Ver is very knowledgable about Tether despite claiming not to be since being an investor of Coinapult, Safello and Kraken all connected to Coinapult.
14. EXTERNAL TETHER AUDIT is planned for 2 Jan 2018!
15. EXTERNAL USD AUDIT is planned for 6 Feb 2018!

Act1 Enter Bitfinex

There have been many accusations made against Bitfinex in the last year alleging Bitfinex are the same entity as Tether and that Tether tokens (USDT) are NOT backed 1 to 1 with USD as claimed, thereby falsely inflating the value of cryptocurrency. These accusations have intensified over the past year as supporting evidence accumulates — for example, Bitfinex losing retail banking partners, while Tether printing increased despite the lack of banking and Bitfinex’s sudden decision to stop new account signups.

Act2 Enter Tether

Nethertheless and despite these accusations Bitfinex has continued to use Tethers which have continued to be issued in the millions and this house of cards has not yet fallen. As time has gone on, many have started to dismiss these allegations as not critical for the ecosystem, some have started shooting the messengers and apparently others have continued to use Bitfinex despite the risks.

Recently there was an important change in the claims by one of the Bitfinex spokespeople, alluded that Tethers were also backed by other crypto currencies instead of USD!

Now in this article I am going to take you further inside this rabbit hole and explain how one aspect of this complicated scam really works, who is involved, what are the risks of it imploding, how it will all unfold and how Bitfinex have continued to issue and sell Tethers to Hodlers of Bitcoin despite very direct allegations of fraud covered in the NYTimes and all mainstream media, making the unbacked USD/Tether saga to become one of the most important concerns in the crypto community in recent months.

Lets start by observing the fact that Bitfinex display their crypto currency prices against the USD which is totally disingenuous since Bitfinex infamously lost their USD banking partners. Bitfinex own and operate Tether.to which issues a Token they claim is ‘backed’ by USD, despite no-one believing this… So the currency pairs listed on Bitfinex should instead of showing BTC/USD be listed as BTC/Tethers or as they might prefer (BTC/USDT). Meanwhile Poloniex another popular exchange does list all of their currency pairs against USDT (Tethers) as an example. Using USD in replacement of ‘USD’T or more accurately just Tethers is blatantly false and shows malfeasance, further using ‘USD’ in the name of a Token issued by some centralised obscure third party issuer is highly misleading and blatant trademark and copyright infringement to the real USD and TETHER should have caught the US attorney attention for counterfeiting USD a long time ago.

Act3 Enter CryptoCapital

This investigation however now moves temporarily away from Bitfinex onto CryptoCapital, (archive) a Panamanian based financial services company FALSLY claiming to be a ‘BANK ‘ (NOT TRUE). With scam warnings online EVERYWHERE. The most recent investigation into Cryptocapital and Decentralized Capital uncovered even more history connecting these entities as one. Now while Cryptocapital also claims to be a fully licensed and insured Panamanian money exchange service. All of these claims are false! CryptoCapital started life as Crypto Financial (CFIG) and was launched via a company called HAVELOCKINVESTMENTS (archive) which is a company owned apparently by something called The Panama Fund, S.A. Havelock Investments is a platform where a lot of SCAM crypto ‘investments’ took place and the last announcement on HaveLOCKInvestments website announced a partnership between Coinapult and Cryptocapital. Remember Coinapult and that >> LOCK << part for now. HaveLOCKinvestments were the platfrom that offered shares in Cavirtex a canadian Crypto exchange which was bought out by Coinsetter which was then bought out by Kraken. Note that Roger Ver is an investor in Kraken. There is good speculation that HaveLOCKinvestments, the Panama Fund, CryptoCapital and Coinapult are all run by the same people.

CryptoCapital have been telling people to send their money to Global Transaction Services (HK) Limited who are known scammers as well as working with some tiny polish banks Pekao Bank and Bank Spółdzielczy.

Despite the false claims of Cryptocapital being an insured bank (all over Coinapult), the banking superintendence of Panama has forbidden all Panamanian banks of providing services and accounts to companies within the Crypto space. No banking licenses have been issued to any bank to engage with digital currencies in Panama! There are no named officers listed on the CryptoCapital website, nor any bank license numbers, company numbers or other information to support the claims that they are a regulated or insured banking institution.

CryptoCapital promote their service as a regulated one stop banking partner dedicated to crypto currency exchanges providing access for customers who once verified are then able to open accounts across multiple exchanges although it has been commonly reported that new customers are unable to open accounts with CryptoCapital. ‘tried to open an account with Cryptocapital without success’

CryptoCapital claim to provide banking services to the following exchanges: COINAPULT, BITFINEX, QUADRIGACX, CEX.IO, EXMO, CHIP CHAP.

Act4 Enter Coinapult

Now jumping from CryptoCapital to Coinapult (one of CryptoCapitals listed exchanges) who are of specific interest in this drama. Coinapult have offices next door to CryptoCapital and their internal technology was created by Coinapult according to Ira Miller (former CEO / CTO of Coinapult). Then Diginner (archive).

Ira Miller of Coinapult created CryptoCapital’s backend systems and API (archive) and it appears there are many close ties between CryptoCapital and the other technology projects created by Ira Miller, such as mentioned on a proposal by Ira Miller to the Dash Community which connects the most interesting companies in this plot even further.

Now, to understand how the Tether distribution system works you have to understand one very interesting feature that is offered by Coinapult called Locks(TM) which allows hodlers of Bitcoin on Coinapult to lock down their Bitcoin USD value. So when the USD value of Bitcoin price moves you can lock in the USD value any time to protect against potential price drops.

Locks(TM) started life on Coinapult and was initially launched to a very skeptical reddit userbase but was then quickly shifted over to “Crypto Capital bank account” to manage shortly after Coinapult ‘integrated’ with CryptoCapital according to this support page (archive).

There is no further information provided by CryptoCapital or Coinapult on how these Bitcoin USD values are locked, insured or stored, but we are SURE that Cryptocapital use the accounting mechanism known as Tether Tokens to account for who owns what USD value. The USD values are claimed by Coinapult to be insured by Cryptocapital but that is blatantly FALSE. The 3rd party counterpart risk is over the moon this relationship (given that CryptoCaptial’s banking partners are known criminals). Note that there is NO MENTION anywhere on Coinapult or Cryptocapital about Tether Tokens. Simply this feature is listed and called Lock(TM) on Coinapult.

Now, going back a little in history, Coinapult started life as a convenient method to send bitcoin via email to people who did not yet have a Bitcoin wallet. Sometime in the last few years Coinapult morphed into what they call an ‘exchange’. That said, there are very limited exchange type features on the site, which are crude and simplistic, not the typical features one would expect to see on a real exchange. Coinapult’s exchange method is more like a buy it now button for Bitcoin and the price feed comes directly from Bitfinex. Tracking the Bitfinex price feed day and night.

All the ‘real’ Bitcoin exchanges and marketplaces have widely different prices. Given that Coinapult’s Bitcoin price feed is Bitfinex’s BTC/USD price we can superpose that the relationship is clear and via CryptoCapital and Coinapult are trading BTC/USDT (Tethers) on Bitfinex and using Tether Tokens for their Lock(TM) feature! (remember HaveLOCKInvesments!).

See the Locks Introduction Video from Coinapult.

Now we are full circle back at BitFinex and Tether where we can superpose with absolute confidence that the Coinapult’s Bitcoin price is Bitfinex price and Via CryptoCapital Tether Tokens are being purchased and distributed through the Coinapult Lock(TM) feature. But we haven’t accounted ‘yet’ for how new Tethers are being sold into the marketplace since Coinapult is clearly not used as a retail marketplace to trade Bitcoin. In fact Coinapult abandoned their retail services to instead concentrate on ‘business to business’ relationships. For example if you try to open an account on Coinapult they instruct you to fund your account via CryptoCapital, yet when people apply at CryptoCaptial for an account they are totally ignored ‘tried to open an account with cryptocapital without success’. Which doesn’t bode well for people expecting to cash out from the Lock(TM)ed USD/BTC or USD/DASH values from CryptoCapital or Coinapult anytime in the near future.

Act5 Enter Mycelium

Now delving a little further into this rabbit hole we find Coinapult then integrated their Lock(TM) feature into the popular Mycelium Bitcoin wallet as well as integrating with the Tender Wallet which offers to transfer Bitcoin and Lock(Tm) BTC/USD across the Telegram app to their millions of users.

Mycelium Coinapult Lock introduction video

Now that Coinapult integrated with Mycelium wallet this partnership opened up and exposed hundreds of thousands of Mycelium Wallet holders to brand new shinny fake Tethers, all of whom are totally unaware how the Lock(TM) feature works in practice, what it is backed by, or what the counter party risks for using the LOCK(TM) feature brought to them by the trusted services of Coinapult / CryptoCapital / Bitfinex / Tether, when holding their BTC/USD values as ‘Lock’(Tether) funds. Nowhere on the Mycelium wallet is it mentioned that Coinapults Lock(TM) is using CryptoCapital ‘bank’ and that Tether Tokens are ‘backing’ these ‘Lock’ed USD(T) Tether values!

Act6 Enter SAFELLO

Coinapult have also integrating with Safello another exchange with hundreds of thousands of users now also accessing the Coinapult LOCK(TM) Tether service. Safello Investors notably include Roger Ver (Coinapult Investor), Eric Voorhees (Coinapult Co Founder).

Act7 Enter DASH

At the same time that Coinapult integrated with the Mycelium and Tender Wallets and Ira Miller started working on Dash integration, around that time we notice that Coinapult stopped communicating to the general public via Reddit and Twitter. It appears the focus at Coinapult shifted from trying become a retail exchange service to instead focus on integrating the Lock(TM) feature into as many crypto ecosystems as possible via business to business partnerships.

Here is a very interesting podcast with Ira Miller being questioned about the third party counterpart risks associated with using Coinapult’s Lock(TM) service and starting at about 10 minutes, the conversation focuses on how the Lock(TM) feature is backed up by Coinapult in a ‘trust them scenario’, specifically of interest is how Ira Miller dodges / answers the questions around pegging BTC to GOLD while justifying ‘you always have to take risk when you trust any third party company’. Starting about 40 minutes Miller talks about efforts to block USA IP address, while more revealing is his ideology, justifications and thought processes throughout this section.

After the successful integration of Coinapult Locks(TM) service into Mycelium, Ira Miller the CEO and CTO of Coinapult publicly announced his ‘stepping down’ from Coinapult CEO to instead concentrate on his new projects at Deginner and Git Guild (archive).

Act8 Leave Coinapult

But then after making all of these integrations with DASH and Mycelium, He ominously disavows Coinapult with this announcement on twitter by Ira Miller (archive):

PSA: I am not involved with @Coinapult since 2015, and everyone I trust has left. Use at your own risk, not my reputation. #s

Accusations made from a former Coinapult employee then call into question the integrity and honesty of the current incarnation of Coinapult.

However, despite Ira Miller disavowing himself from Coinapult on Twitter, at 6:33 PM — 5 Aug 2017, and apparently stepping down as Coinapult CEO and CTO in 2015 (he still likely the beneficial owner!) and he was still championing the amazing business partnerships of Coinapult / CryptoCapital / Mycelium and Bitfinex to the Dash Masternode community on 19th august 2016.

AND YES Ira Miller successfully convinced and partnered up with Dash giving them too the opportunity of fiat ‘banking’, though CryptoCaptial exposing the Dash Community to his ‘banking’ solutions and the now infamous Coinapult Lock(TM) Tether feature.

Here is an overview of the Ira Miller GITGUILD Integrations designed for the DASH (archive) community to which features all of the main players of this play, Cryptocapital, Coinapult, Bitfinex as you can imagine after this successful integration with Dash the spot price has risen from 88$USD on the 17th/may/2017 when the integration was announced to todays giddying price of 1565$ on the 20th Dec 17. An epic 18 fold increase or 1678%.

Act9 Leave Roger Ver

Interestingly one of the most influential Bitcoin early investors, ‘Roger Ver’ did a AskMeAnything Youtube livestream on 18th/12/17 and the most important and most commonly asked question from the reddit community was for his thoughts on the Tether / Bitfinex saga, did he think it hold Tether would hold a 1–1 USD value in a crash? His nervous reply (starting at about 3 minutes) was that he didn’t know anything about Tether but had heard many allegations, but suggested people do their own ‘due-diligence’ research and that he was very often the victim of slander and could understand how others are often accused wrongly of scams when they are not.

What he failed to mention was that he himself is an investor in Coinapult and also an investor of Safello which now is also using Coinapult LOCK(TM) Tethers). Roger Ver would have been fully informed about the financial profits that arose from the Coinapult Lock(TM) integration into the Myciliem Wallet and the LOCK(Tether) into Safello.com. However with Roger Ver’s recent and public Launch/backing of Bitcoin_Cash and his own recent transfers of 40K BTC to BCH via Bitfinex, into Bitcoin’s new rival, maybe Roger knows more than was publicly admitted?

Act10 Connecting The Actors Together

An interesting method of connecting these projects together is the using technical repositories listed on Github built by and maintained by Ira Millers teams. Of interest is a dead exchange project called 1btcex which has CryptoCapital branding all over it, is built on an open source project called WLOX, WLOX was developed by Ira Miller for CryptoCapital, as can be seen on the CryptoCap GitHub page (archive). 1btcxe.com (archive) is hosted on the IP 104.25.146.101 which is the SAME IP hosting address for CryptoCapital (at time of writing).

On the same IP 104.25.146.101 we notice the following projects:

trustless.exchange (archive) which links to the Cryptocap GitHub page

On the same IP as CryptoCapital, as trustless.exchange and 1btcex.com is small number of xxxPORN and Lets Get Rich Online tutorial sites.

So those people relying on the banking capacities of the exchanges using Tethers should also be aware of the company they are in. These exchanges not only deal strictly in Tethers and pass them off as USD(T) but share the same ‘banking’ partner Cryptocapital (scam bank) and many wallets and exchanges have surreptitiously integrated Coinapult LOCK(TM) USDTethers to their users.

These are the bitcoin exchanges (archive) that Ira Miller has produced clients for which should be an indication of focus of his reach.

This is unfolding badly for the hundreds of thousands of people unwittingly hodling unbacked Tethers Via the Coinapult Lock(TM) Tether feature included in the popular Mycelium wallet and Safallo exchange. The young and innocent Dash evangelists and all the other wallets who are intergrating this popular feature. The New Dash Evolution (incarnation Version 2 of Dash) is already totally exposed by integrating with this toxic banking network and reliance on these unregulated exchanges and Tethers. I cannot be sure how many other exchanges and wallets are using this Lock(TM) and the fake Tether USDT / USD but these alone could easily account for the 1 Billion infake Tether Holdings.

Act11 Leave Tether

Many people have been calling for Bitfinex/Tether to conduct an external audit confirming real USD holdings and BTC holdings to verify that the over one billion Tethers currently being circulated and being held by brave crypto paper millionaires are indeed backed by real USD. While this has not yet and will never happen, one method the crypto community has available to them is to organise a crowd regulated open EXTERNAL TETHER AUDIT to prove and confirm the liquidity of Bitfinex/Tether against ‘their’ BTC and DASH hodlings.

If we suppose (take it for granted) that in all likelihood there are no real USD $$$ backing Tethers but instead hope and pray that the BTC and DASH that Bitfinex have purchased with these (fake USD) Tethers is still being held within Bitfinex ‘vaults’ and has not found yet their way into some ‘hackers’ or ‘insiders’ account or instead been sold off on other exchanges and squandered. Then if one prays even harder that Bitfinex will redistribute and exchange (give back) this safely guarded BTC and DASH to the rightful owners at some fair value according to what they are expecting upon request, only then can the crypto hodlers show some sigh of relief, even if they are unable to redeem the full USD paper value they were expecting according to what their exchange and wallet balances currently state.

If however the USD price of BTC/USDT (TEHHER) goes down quickly it will leave all of these paper millionaires with Locked USD funds to discover they have actually got Tethers instead of USD and they will have absolutely no hope of redeeming them on any regulated exchange which works with real USD. The best they will be able to hope for is to regain control of the BTC and Dash that they relinquished. Though the real question remaining about Bitfinex and their BTC/Dash liquidity will be at what real USD value. Have they the intention of keeping the BTC/Dash they have bought with fake Tethers or are they running to the hills already hiding behind their fractional reserves while trying to exchange as many BTC/Dash for real fiat currencies before everyone else realises the game is up.

An EXTERNAL TETHER AUDIT of Bitfinex can be simply achieved by organising ‘everyone’ in the crypto community who is unwittingly hodling Lock(TM)ed USDT (Tethers) in their various DASH and Mycelium wallets by getting them to convert these worthless Tethers back to real BTC & Dash. Then removing those BTC and Dash from the unregulated exchanges and wallets and move them to other safely controlled wallets that don’t offer those LOCK(TM) / HODL ‘features’ and Tether USDT ‘Hodlings’.

This will be possible to organise fairly quickly with the massive interest and addiction speculators have in this space. It will not be too difficult to organise everyone to convert out of such Hodlings (when they know what they are hodling) back into the real BTC/Dash crypto currency of choice which will quickly validate the intentions of Bitfinex and Tether. In as much as proving if they will act in good faith when tested or fold under pressure because they don’t have the value or intention to cover the debts on their glossy accounting balance sheets.

I am scheduling a community driven EXTERNAL TETHER AUDIT to take place at 2pm GMT on the 02/Jan / 2018. Giving everyone reasonable time to allow the media outreach of this community driven audit upon hearing about these revelations to alert all unwitting Hodlers about the risks they are taking and allowing them to participate in this recovery project while BTC and DASH prices are still astronomically high!

Act12 Leave Bitfinex and ALL Exchanges

Because of the questions raised during this investigation into Tether and the reliability of crypto exchanges in general I am also calling for an EXTERNAL USD AUDIT of all exchanges!

We are bombarded daily with euphoric price propaganda pumped to us from every smug (and rightly so) early investor of BTC and the exchanges along with the large whales, screaming to us ‘all time high’ ‘spot price’ and announcing the Bitcoin MarketCap which today (20/12/2017) has reached a dizzying 320 Billion USD, while the crypto MarketCap is at over 600 billion USD. Given these all time high’s one would be safe to assume there would be huge liquidity and enough volume to absorb a fair ‘medium/high’ price for everyone who has been hodling cryptos for at least 6 months to allow them to cash out at least half of their holdings. With the record numbers of new speculators flooding into these markets all wanting a share of these astronomical gains, in the process crashing the Coinbase servers and crippling their KYC department, it should be possible to get some real USD$ out of these exchanges without crashing the current BTC/Dash prices.

Lets see what this would achieve:

• First it would prove this isn’t just some massive decentralised Ponzi scam as it is being accused of being by every central bank and government official every time they open one of their mouths. Where Satoshi and early entrants aren’t just sucking out any value as soon as new ‘suckers’ put it in.
• Second this will provide a community driven EXTERNAL USD AUDIT of funds which are being held on behalf of the community by a small group of the centralised exchanges. It’s one thing to be paper rich and anyone who’s played Monopoly has felt what that’s like! This would prove if there is real USD liquidity and equity in the various crypto exchanges to cover what was shown in everyones wallets and in their exchange accounts, validating this MarketCap and spot price value to all naysayers and proving to the skeptical world that this was the real deal (thus once proven this validation experiment will without any doubt encourage MASS adoption of cryptos even quicker!).
• Third it would validate the wealth that many people think they currently have on paper, but don’t really know, while having concerns that this might all pop anytime. Since they have constantly heard the quotes ‘don’t put in more than you can comfortably afford to loose’, ‘you may loose 1oo% of your stake’ etc.
• Fourth, some may worry this will crash the current price, but if the price does drop a little why should you care? 1) You would have peace of mind that the paper value is real and achievable 2) this crypto revolution is a big experiment still in its infancy and as such it should be tested for such eventualities and circumstances 3) If the price does crash, the better for everyone, lots of people are stuck outside waiting to get back into BTC and other cryptos and once the paper value has been validated, millions more people will come flooding in because they will trust the systems and exchanges that performed honestly during the community driven EXTERNAL USD AUDIT, once having been tested and proven they will want to get back in at better prices. This will only serve to push prices even higher very quickly but in a safe tested exchange environment.

I am scheduling this EXTERNAL USD AUDIT of ALL major exchanges to take place before the 6th February 2018. It will take time to organise withdrawals from Coinbase and other regulated exchanges who have relatively tight withdrawal limits which block larger account holders and since this will be a manual process, plenty of time will be needed to manage and organise this LIQUIDITY AUDIT. Obviously one might suggest everyone puts their money straight back into their favourite exchange upon receiving it without any undue stress, delay or phoney surprise requests for further due-diligence burdens placed upon you to stop you from getting your money back. Lets see how this experiment unfolds and let this community self audit method be used to test fiat providing crypto exchanges in the absence of them providing real trusted third party and validated health audits to us voluntarily.

Act13 The Next Chapters

Whats Ira Miller Doing Now?

Ira Miller has just announced a new fund that you might be interested in participating in of a decentralised exchange. Given the history of HaveLOCKinvestments and the success of the Coinapult Lock(TM) Tether Integration via many of the major exchanges and ecosystems it will surely be a great success. Invest now using any of the profits from your Tether Hodlings.

What is Tether Doing Now?

Tether have just announced that they are phasing out the Tether platform (Tethers) and replacing it with a shinny new one following the recent ‘hacking’ event that many suspected was an inside job. Tether have also announced that they will not be redeeming any USD for Tethers themselves since they are hodling on to the real USD. Instead they inform that hodlers should go to any one of the unregulated exchanges and try and trade them there with anyone else who will take them off you! Good luck with that I say. Tether confirm that they are hodling over 1 billion USD(T). Wait. They say USD on one page and then USDT on the actual page, which is it? Well they also say their fake audit is not happening yet and please wait a bit longer for that, that’s a flat out lie too!

My Speculations

Tethers were probably conceived with the intentions to solve the particular problem of not being able to easily send fiat currency between exchanges, but along the way justifications were made and unforeseen problems and opportunities arose, coupled with greed, naivety and grandiose delusions that one day Tether may be more ‘powerful than the USD itself’ you have to laugh at that one. This combination of fallaces and fraud has left hundreds of thousands of people hoodwinked into Hodling worthless Tethers while given up their BTC/Dash on their journeys to the moon which is now officially in tatters.

With a community driven EXTERNAL USD AUDIT, many of the current exchanges especially the unregulated ones will not deliver well and Tether (USDT) will drop to ZERO while they try and hold on the the BTC and Dash. If the Tether based exchanges are able to give back the value of BTC and DASH to the rightful owners I think that would be as genuine attempt as one could realistically hope for. Anyone hoping to regain the current USD value that they see marked in their accounts are delusional. It’s just not going to be possible to give everyone back the USD value they think they have. That USD value is just not there!

It is the exchanges that are holding large quantities of BTC and Dash now. If they exchange ‘their’ BTC and DASH for the fake USD Tethers at the currently high USD valuations, then they will end up given back only a few BTC and Dash compared to the price they originally paid (since they paid a lot less for the BTC at the time when they sold the Tethers) given them a massive BTC and DASH profit, while taking the worthless Tethers back and given up some of their crypto holdings. This will leave them holding the fake USD Tethers and the difference between the price they first bought the BTC and Dash and the price they sold them back for will determine their BTC profits! However if the USDT price drops they will end up making a loss, hence the pressure they are under to ‘fake it until they make it’.

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