Bitmex Research released a detailed report on Tether today, February 19, detailing the reasons why Tether is most likely supported indeed , Tether is a digital token backed by a fiat currency, supposedly pegged to 1: 1 with the US dollar. Due to the lack of sufficient bank checks issued by Tether, there are rumors that Tether would not have enough money in reserves to buy back all the Tether chips with US dollars. if the need arose

these rumors by showing a possible correlation between the rising liquidity reserves of the IFE (International Financial Entities) banking category in Puerto Rico, under a section entitled " Lack of transparency can not indicate fraud . "

Cointelegraph recently reported that Puerto Rico could be becoming a crypto tax haven.

Bitmex's reports put forward the Noble Bank of Puerto Rico as a potential candidate for holding Tether's reserves, mainly because it is one of the two banks with full reserve of Puerto Rico that works publicly with crypto.

However, there is still no way of knowing for sure where Tether's cash reserves are. Although the "Transparency" page of their website indicates their current balances and states that they are "regularly audited" and "totally transparent", the company actually broke the ties with its New York auditor in January before to publish everything

The report also covers the piracy of about $ 31 million of Tether in November 2017, which has pushed the company, in essence, to ask users to put in day their software to block stolen funds.

The Bitmex report writes that " demonstrated that Tether actually controls the general ledger because they can force a hard fork at will and reverse any transaction – although it does not. had no doubt about the control of Tether in advance . "

The report then wonders why Tether" bothered to put the database on Bitcoin blockchains and Ethereum at all ", arguing that it would actually be more cost-effective for Tether not to pay the minor's fees and to create his own public database.

The report also mentions quotes sent to Tether and the Bitfinex exchange in December 2017, after which the relationship between the two companies was officially disclosed, namely that they have an almost identical management team.

The involvement of Bitfinex has Tether has been publicly questioned by critics, the most famous Bitfinex blogger, who has seen the arrangement is suspect partly because of the fact that no third-party verification has occurred. 39, has been published Tether reserves.

In response to the vitriol against Bitfinex put online by Bitfinex & # 39; ed, the exchange promised to continue

Bitmex's research report writes that this relationship between Bitfinex and Tether was actually relatively public even before the disclosure temporarily posted on Tether "A" Us ", quoting Tether founder Linkedin, who lists the two companies.

The report ends with a list case studies of various online remittance services that have been shut down by regulators due to violations of money laundering restrictions. This correlation has been established between these services, which have now disappeared and are Tether leads Bitmex to conclude that Tether " can also attract criminals and eventually suffers the same fate ."

Bitmex has two concrete conclusions from their research in Tether, which he recom also asks investors not to keep in the long term: