tether announces not send cash

Tether, a finance company based in Hong Kong, has announced on its website that "all incoming international wires to Tether have been blocked and refused by ... Taiwanese banks," and reports that the issue has been affecting transfers since April 18, 2017.

As the third such announcement of its kind to be made from a virtual currency exchange in as many weeks, the communication mirrors those made by Bitfinex and OkCoin earlier this month. Tether similarly told users that it is "pursuing alternate funding channels" and establishing "new banking corridors," and hinted at the possibility of "intermediate customer redemption processes" with USDT integrators. The company maintains that all USD transfers for users with accounts in Taiwan are without issues.

Today, April 24, 2017, at 11:00 AM, Tether's transparency site showed total shareholder equity in the Euro at -€28.45, meaning the company’s liabilities slightly outweigh its assets, in Euros. This might seem insignificant compared to its USD shareholder equity of $1,243,175.19, but it is still a discrepancy.

Tether is no stranger to discrepancies; in March, NewsBTC reported Tether's assets to be $42,313,582.47 with a liability of $41,371,231.12.  However, that near million negative USD balance has since become a positive one, suggesting that calls to divest from Tether heard as early as March this year might have been unsound.

Still, some aspects of Tether’s legal statements might cause concern. On Reddit, eyebrows have been raised over Tether's terms of service, which indicate the company has no contractual obligation to redeem the currency they issue for money.

The announcement made by Tether uses language which seems to put it on the attack, portraying the issues surrounding the company to be the result of "unreasonable attempts to disrupt and discredit the legal and responsible business of reputable, innovative companies like [Tether] and other exchanges in the blockchain space," going on to say "first they ignore you, then they laugh at you, then they fight you."

It remains to be seen whether Tether's sentiment towards central banks opens the forum for regulatory compromise or results in more red tape.

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine. He is a full time staff writer for ETHNews and holds value in Ether.
ETHNews is commited to its Editorial Policy
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