No - thats what I'm saying. They use a bot to buy/sell USDT to keep the price 1:1... And then they redeem anything purchased by the bot.
Effectively, they will redeem only for themselves.
Could be a neat way to do no KYC or ownership verification or dealing with messy bank transfers to dodgy people, etc. Hides the location and/or existance of funds from redeemers and those able to trace money movements too.
Or could be a way to hide a delicately balanced stack of cards...
Edit: I'm not saying it is, but, just as an example, someone could buy BTC from an unregulated country, then purchase a Tesla and request a refund in dollars.
Even if it was, I wonder how one could be caught doing that?
They can buy BTC, then exchange them for LTC in a non US based exchange and do the reverse for cashing out the profits. Eventually tumble them in the process for more obfuscation.
My theory it's a payment processor that converts to USD at the time of purchase and thus would never refund anything in croins at original rate (am open to be proven wrong).
Would you expect they will rug pull GUSD? I assume this, like with USDC, would be seriously illegal, but it also wouldn't surprise me if they had some ToS provisions somewhere waiving their obligation to redeem GUSD for USD.
Actually they most certainly can and have. The ERC20 contract for USDT has a blacklist function and the administrator can block transfers for arbitrary addresses, rendering it worthless. Same with USDC.
Ah, no. These people are shady AF. They intermingle funds and shuffle them around behind the scenes. This whole system is a black box surrounded a tower of cards.
But the system is certainly conducive to "pump and dump" - whatever the NFT equivalent is called. A malicious actor can just artificially inflate the prices (by trading between different accounts, no money switching hands) and sell whenever a moron comes along and places a bid.
The article mentions the specific site and it seems to deal only drugs. They don't keep the money at the generated address, but transfer it to another wallet I suppose?
It's not. They pay out via zksync (layer 2 system) to avoid fees, but they only accept payment in the main chain.
So if you want to cash out or use the tokens you receive, you need to eat the fees. It's ridiculous and a clear mechanism for them to restrict the circulating supply.
Sites like eBay would require user identity verification whether or not the government required it. Can you imagine the scale of fraud on eBay if users were allowed to set up anonymous accounts and accept irreversible currency transactions to anonymous sellers? It would be a scammer’s dream come true.
I wouldn’t have any interest in using such marketplaces.
As for Brave: Whether or not KYC or other regulations explain their behavior, any cryptocurrency rewards program has an inherent incentive to make it as difficult as possible to cash out. People who cash out almost always sell their coins, putting downward pressure on the price. If they can use dark patterns to reduce the number of people selling coins, the coin price stays higher.
The ideal cryptocurrency rewards program (for the crypto, not the users) would give people coins but almost force them to hold those coins and make it as difficult as possible to sell. This simultaneously hypes the coin by spreading awareness and removes downward price pressure by making it difficult to sell. This almost always means the company or founders have a lot of the coin that they plan to sell off as it becomes popular.
Virtually everything that comes attached with arbitrary crypto tokens or rewards is a scam to make the founders wealthy while the users chase pennies.
Seems like it'd be feasible to fake sales or use NFTs to hide laundering/transfer schemes. Getting even one rube to buy one of these would easily pay for gas?
Can you be more concrete? Here's what I'm imagining you're saying: first you take a month's paycheck out of the bank in yuan, in cash; then you walk down the street to a jeweler's shop that will exchange your yuan in cash for US$100 bills; then you send a WeChat message to a guy who sells Bitcoin, and the next day you take a taxi with your US$100 bills to a cafe, where he transfers you the Bitcoin and you give him the US$100 bills. Is that what you mean?
I'm wondering if somebody who spends all of their highly-controlled digital yuan in cash every month, and not on anything detectable, will draw suspicion.
Indeed was just discussing the same thing. Perhaps they simply are tracking if the money goes anywhere or using this as a way to hide their incompetence? Just saying they can do something they really can’t or put a legal hold on that wallet so if any exchange receives it they get fined?
As in, you have all this crypto with made up value, and we are going to “cash out” due to a mistake, and now you have whatever we stated the value is in cash?
Effectively, they will redeem only for themselves.
Could be a neat way to do no KYC or ownership verification or dealing with messy bank transfers to dodgy people, etc. Hides the location and/or existance of funds from redeemers and those able to trace money movements too.
Or could be a way to hide a delicately balanced stack of cards...
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