Living in a country known for having some of the toughest financial regulators in the world has its advantages and disadvantages. While it may deter the more cautious international scammers from targeting you it can also hurt your ability to conduct normal business. American cryptocurrency traders are now facing this situation with Tether.
“Tether is Always Fully Transparent”
Tether has reported today that it started resuming limited wallet services, allowing some users to login and withdrew funds held in their wallets. Unfortunately the company did not disclose much more information about the investigations into the matter that caused the suspension of service, last month’s $30 million hack.
The main purpose of today’s announcement appears to be reassuring investors in the technological and financial soundness of Tether. The developers say that are in the process of creating a new platform, which will eventually replace the current wallets and addresses. They also acknowledge the fears about solvency but say that the audit is taking time as the due diligence being performed is substantial.
Above all, they state that Tether Limited does carry the fiat amounts it reports to in its unnamed partner banks. “Any suggestion to the contrary is uninformed and baseless,” they warn, echoing the sentiment of a recent lawsuit against critics.
The Fine Print
There are also a few other points that holders should take heed. The system is still processing a backlog of transactions sent after the shutdown, so it will take a few days for deposits sent in the past month to become accessible in wallets. New attempts to deposit to old wallets or addresses are not advised and may result in lost funds. Additionally, until the launch of the new platform, selling and buying will not be possible via tether.to.
Holders are sent by Tether to exchanges if they want to sell USDT for USD or other cryptocurrencies. They invite exchanges and qualified corporate clients to contact them directly for arrangements. However, the company itself “cannot create or redeem tether for any U.S.-based customers at this time.”
They also try to clarify misconceptions about the Terms of Service, giving the company the power to refuse service arbitrarily. However, they add that “we must and will take steps to prevent terrorists and other bad actors from trafficking in Tethers. Accordingly, where, for example, a redemption of Tether will violate applicable laws, that redemption will continue to be prohibited.”
How do you think the reputation of Bitfinex will be affected by the latest developments? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Tether.
Want to create your own secure cold storage paper wallet? Check our tools section.
Use Bitcoin and Bitcoin Cash to play online casino games here.