How does the distribution system Tether (USDT)

Disclosed, as unsuspecting users Bitcoins and Dash tend to keep useless tokens Tether through unregulated centralized exchanges and options Locks™ wallets!
The main points of the article:
  • Many accuse Bitfinex in the manipulation of the price of BTC by buying BTC for unsecured teary.
  • Bitfinex owned and operated Tether.
  • Teary (USDT) secured USD is not 1:1, and less than 10%.
  • At Bitfinex and Fiat Tether no reliable banking partners.
  • Thousands of unsuspecting people keep teary in purses with Locks™ from Coinapult.
  • Bitfinex etc. instead of teterow refer to USD.
  • The Bank in the center of the DASH and Bitfinex – Crypto Capital is not a Bank!
  • Crypto Capital is not licensed and not insured and uses as a banking partner entities, known as criminals and frauds.
  • Crypto Capital provides services to many exchanges, and behind him are the same people that for Coinapult.
  • Coinapult announces binding or DASH BTC to USD, but in fact it is unsecured teary (USDT).
  • Option Locks™ from Coinapult wallet embedded in the Mycelium and in the DASH, Safello and others.
  • DASH has introduced unreliable patnoe banking solution provided by the people behind Coinapult / Crypto Capital.
  • Roger Ver knowledgeable about Tether, though, and denies that he is an investor Coinapult, Safello and Kraken, which are all connected.
  • EXTERNAL AUDIT TETEROW to 2 January 2018 (not held)!
  • USD EXTERNAL AUDIT is scheduled for February 6, 2018!
  • Bitfinex and Tether stopped registering new accounts
Act 1. Appears Bitfinex
Against Bitfinex over the past year has been many of the charges under which Bitfinex and Tether is one and the same entity, and the tokens Tether (USDT) NOT secured USD 1:1, as stated, and therefore, the value of cryptocurrencies is inflated fraudulently. Over the past year, these charges have been consolidated with the accumulation of evidence – for example, Bitfinex is losing retail banking partners, whereas the emission of the Tether increases, despite the lack of Bank support and Bitfinex unexpected decision to suspend the registration of new accounts.

Act 2. You Receive The Tether
Despite the charges, Bitfinex continues to use teteri, which then produced in the millions, and this house of cards is still collapsed. Over time, many began to dismiss these claims as non-critical to the ecosystem, some have begun to attack the distributors of bad news, but others have continued to use Bitfinex despite the risks.

Recently in statements by one of the representatives of Bitfinex, a marked change occurred, indicating that teteri also secured by other crypto-currencies instead of USD!

In this article I will lead you deep into this rabbit hole and will explain how it works one of the aspects of this complex Scam, who was involved, what are the risks of collapse, how things will develop, and how Bitfinex continues to produce and sell teteri holders of bitcoin, despite the direct allegations of fraud in the NYTimes and all popular media, from-for what the story is about unsecured USD ceterach in recent months has become one of the most important concerns in cryptosuite.

To begin, we note that Bitfinex shows the price of cryptocurrencies in USD, which is absolutely unfair, because it is well known that Bitfinex have lost their dollar Bank partners. Bitfinex owned and operated Tether.to produce tokens, which are said to be "secured" USD, although nobody believes that... Thus, instead of the Bitfinex BTC/USD should be listed BTC/Tether, or BTC/USDT. Meanwhile, another popular exchange Poloniex really drives exchange rates in USDT (ceterach), for example. The use of USD instead of USDT, or rather just teterow, is an outright lie and abuse, besides the use of the abbreviation "USD" in the name of the token that produced some strange centralized third party is a serious misrepresentation and a blatant violation of trademark rights, and Tether had to attract the attention of us prosecutors for forgery USD.



Act 3. You Receive The Crypto Capital
However, the investigation is now temporarily transferred from Bitfinex on the Crypto Capital, (archive), based in Panama financial service company, FALSELY calling themselves a "BANK" (IT is NOT). While a fraud alert can be found EVERYWHERE. Recent investigation into Crypto and Decentralized Capital Capital has uncovered more evidence that it is one and the same entity. Crypto Capital also calls himself a licensed and fully insured Panamanian money exchange. All this is a false statement! Crypto Capital was originally called Crypto Financial (CFIG) and was launched through the company HAVELOCK INVESTMENTS (archive) belonging to a Panama Fund, S. A. Havelock Investments is a platform where there were many FRAUDULENT cryptocurrency "investment", and in the latest announcement on the website of HaveLOCK Investments said about the partnership Coinapult and Crypto Capital. Remember about Coinapult and "LOCK".

Platform HaveLOCK Investments offered shares a canadian cryptocurrency exchange Cavirtex, which was purchased by Coinsetter, which then bought out the Kraken. Note that Kraken is investor Roger Ver. There is good reason to believe that HaveLOCK Investments, Fund of Panama, Crypto and Capital Coinapult are controlled by the same people.

Crypto Capital were advised to transfer money Global Transaction Services (HK) Limited, known fraudsters, collaborating with small Polish banks, Bank Pekao and Bank Sp??dzielczy.

Despite the false statements by Crypto Capital (including on the website, Coinapult) that he is insured by the Bank, banking supervision Panama has banned all Panamanian banks to provide services and bills the companies from Cryptoprotected. Not one Panamanian Bank has no license to work with digital currencies! On the website Crypto Capital you do not specify the names of the leaders, no Bank license number or registration number of the company, nor any other information confirming the statement that it is not regulated or insured banking institution.

Crypto Capital advertises itself as a regulated universal banking partner that allows clients after a single verification to open accounts on many cryptocurrency exchanges, but often it is reported that the new customers cannot open an account at Crypto Capital. "Unsuccessfully tried to open an account at Crypto Capital".

Crypto Capital announces the provision of banking services to the following exchanges: COINAPULT, BITFINEX, QUADRIGACX, CEX.IO, EXMO, CHIP CHAP.


Act 4. Appears Coinapult
Now let's move from Crypto Capital to Coinapult (one of these Crypto Capital exchanges), representing in this drama, special interest. Office Coinapult is adjacent to Crypto Capital for which Coinapult (then Deginner (archive)), according to Ira Miller (former CEO / CTO Coinapult), developed internal technology.

Ira Miller of Coinapult created the backend systems and API's (archive) for Crypto Capital, and, it seems, there is a close connection between the Crypto Capital and other technological projects developed by Ira Miller, such as mentioned in his proposal to the Dash community, which further the most interesting twist in this story.

To understand how the distribution system Tether, you need to understand one very interesting option offered by Coinapult, Locks™, which allows holders of bitcoins to Coinapult to lock in the value of these bitcoins in USD. Thus, when the dollar price of bitcoin changes at any time to lock in the value in USD to protect themselves from a potential drop.

Option Locks™ was launched at Coinapult and was originally represented by a very skeptical audience of Reddit, but then was transferred to the "Bank account, Crypto Capital" soon after "integration" Coinapult with Crypto Capital, according to this support page (archive).



4.7 What happened to my bitcoins / where are my bitcoins after I fixed them the cost?

For transaction Locks need to transfer bitcoins to Coinapult. After that Coinapult is taking market balancing actions to ensure payment of adequate amounts of bitcoin when removing fixation. For example, when you commit to gold, Coinapult buys an equivalent amount of gold. This allows Coinapult to pay the fixed cost in BTC when you decide to remove the fixation.

Crypto nor Capital, nor Coinapult does not provide any additional information about how recorded, insured or stored dollar value of bitcoins, but we are CONFIDENT that Crypto Capital account uses a mechanism known as tokens Tether, to account for what dollar cost has. Coinapult argues that the dollar value insures Crypto Capital, but this is an outright LIE. That bond counterparty credit risk above the moon (given that the banking Crypto Capital partners – the famous criminals). Note that Crypto Capital and Coinapult is NOT MENTIONED anywhere on the tokens Tether. On Coinapult, just given the option Locks™.

Back to the story. Coinapult has emerged as a convenient way of sending bitcoins by e-mail to those who don't have a bitcoin wallet. In recent years, Coinapult has become a "stock market." However, the site presents very limited options exchange, rough and simple and not those, what can you expect from this exchange. Exchange Coinapult is more reminiscent of the method "buy it now" and prices are taken directly from Bitfinex. Feed prices Bitfinex is monitored around the clock.
All "real" markets of Bitcoin have very different prices. Given that the price of bitcoin Coinapult is the price of BTC/USD on Bitfinex, we can conclude that their relationship is obvious, and that Crypto Capital and Coinapult are trading BTC/USDT (teary) on Bitfinex and use tokens Tether at its option Locks™ (think HaveLOCK Investments!).
Now we're back to Bitfinex and Tether and can with absolute certainty conclude that Coinapult bitcoin price is the price Bitfinex, and that through Crypto Capital purchased tokens Tether and distributed via the option Locks™ from Coinapult. But we have not yet considered how to market well new teary as Coinapult is clearly not being used as a retail market for trading bitcoins. In fact, Coinapult has abandoned its retail services to focus on the relations "business-business". For example, if you are trying to open an account at Coinapult, you are instructed to Deposit via Crypto Capital, but when people are applying for opening an account at Crypto Capital, they completely ignore ("unsuccessfully tried to open an account with Crypto Capital"). And this does not Bode well for those hoping in the near future to withdraw from Crypto Capital or Coinapult recorded using Locks™ value of USD/BTC or USD/DASH.


Act 5. Appears Mycelium
Going deep into the rabbit hole, we find that Coinapult has integrated its option Locks™ in the popular bitcoin wallet Mycelium, and also in the Tender wallet, offering a bitcoin transfer and fixed by means of Locks™ BTC/USD via Telegram to the millions of its users.

Video Lock from Coinapult in Mycelium.


Now that Coinapult is integrated with Mycelium, this partnership has provided new shining fake teary hundreds of thousands of users wallet Mycelium that don't know how it works option Locks™ into practice what she achieved and what are the counterparty risks when using services provided by trusted Coinapult / Crypto Capital / Bitfinex / Tether option Locks™ and storage of the values of BTC/USD in "fixed" form (ceterach). The Mycelium wallet is not mentioned anywhere that Locks™ from Coinapult uses "Bank" Crypto Capital, and that the recorded value of USD(T) "secured" tokens Tether.



Act 6. Appears Safello
Coinapult also integrated with Safello, another exchange with hundreds of thousands of users now access the service Locks™. It is noteworthy that the number of investors Safello – Roger Ver (investor Coinapult) and Eric Voorhes (co-founder Coinapult).


Act 7. Appears Dash
At the same time as integrated Coinapult wallets Mycelium and Tender and Ira Miller began work on the integration with the Dash, Coinapult stopped to chat with the public on Reddit and Twitter. It seems that the focus has shifted away from attempts to become a retail currency exchange service integration option Locks™ in a large number of cryptocurrency ecosystems through partnerships like "business to business".



Here is a very interesting podcast with Ira Miller, where he is asked about counterparty credit risks of the use of the service Locks™ from Coinapult, and about 10 minutes into the conversation focuses on how option Locks™ provided by Coinapult on the script "trust them", and particularly interesting, as Ira Miller shirk from answering the questions about the binding of BTC to gold, justifying that "if you trust a third party there is always a risk." About 40 minutes Miller talks about attempts to block American IP addresses, and in this part of his ideology, excuses and thinking the most significant.

After the successful integration of the service Locks™ in Mycelium from Coinapult Ira Miller, CEO Coinapult and CTO, publicly announced "withdrawal" from the position of CEO at Coinapult, to instead focus on his new projects and Git Deginner Guild (archive).

This concludes the first part of the article dedicated to the exposure of (possible) scams work Tether and its mysterious connection with Bitfinex. In the next part we consider the process of the "sunset" of the scheme.
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