Today the New York DOJ indicted two people on suspicion of ‘shadowbanking’ for crypto companies – most notably Bitfinex/Tether. On investigation it turns out that one of the companies involved in shadowbanking, Crypto Capital, was also tied to QuadrigaCX. Though the Tether FUD is strong these days, for once I am not worried about it. Let me explain.
There’s two things we need to seperate here. First there are the allegations of involved parties doing illegal things, like illegally functioning as a money transmitter without a license. Secondly there is the issue and concern that Tether is unbacked 1-to-1