@AP_Abacus In the Celsius case..the collateral from loans was deployed in the earn wallets for rehypothecation, so the loans became “earn” by entering earn wallets. I wonder if Genesis used the same system, loan collateral ending up commingled with earn assets in the same wallet.
Well, naming @Gemini and @genesis together means if the *companies* are nailed on an unregistered offering, the *control persons* (i.e. Winklevii and Barry) may be joint + severally liable. This is a big deal and might be *very bad* for the Twins. Why?
"Barry has no personal or professional relationship with SBF, Alameda, FTX, 3AC, Do Kwon, Luna.
Aside from a few emails, Barry does not recall ever meeting, speaking with, or otherwise privately communicating with them.
In fact, Barry took a vow of silence 2 years ago."
FTX's former top lawyer Daniel Friedberg has cooperated with US prosecutors as they investigate the crypto firm's collapse, a source familiar with the matter said - Reuters
At any time, Tether can literally bar all "customers" from redeeming Tethers, and effectively run off with the money.
Hey, don't act like they didn't warn you in their whitepaper, or previous iterations of their terms of service.