HitBTC Users Cannot Move or Withdraw USDT Due to “Currency Operations not Available” Error

Most cryptocurrency users are concerned over the USDT issue. With so many new tokens in circulation and no independent audit, things have become very dubious. TO make matters worse, it now seems HitBTC users can no longer move USDT either. Withdrawing is impossible and trading with this “altcoin” is very spotty. This is not a good development by any means. Moreover, the exchange’s support team seemingly has no explanation for this development either.

There have been quite a few oddities with Tether in recent months. Their issuance of USDT tokens has been documented multiple times. It seems new tokens are brought into circulation every time the Bitcoin price takes a big hit. This may still be a big coincidence, but few people seemingly believe that. It is evident things aren’t adding up and speculation will run wild until we see official clarification regarding this matter.

More USDT Woes to Deal With

To make things worse, it seems HitBTC users can no longer use or withdraw USDT. That is a rather worrisome development, even though it is one of the smaller exchanges. People have reported issues with this site for a few days now, most of which seems to be related to USDT trading. It is uncanny how this “asset” can effectively cause so many problems in quick succession. How all of these issues will be resolved, remains to be seen.

Adding to the list of oddities are the growing number of unconfirmed transactions from one of Tether’s wallets. More specifically, Omnichest shows several dozen unconfirmed outgoing transactions. Unlike previous transactions, these are not for big amounts per se. Some transactions are as small as 600 USDT.  Nor are they labeled as “Grant Tokens” either. Something isn’t adding up in this regard, that much is rather evident. How this will affect HitBTC and possibly other exchanges moving forward, remains to be seen.

For now, it remains unclear if this is a Tether or HitBTC issue. We do know the Omni developers added a feature for centralized issuers to freeze specific wallets. It is highly doubtful Tether would do something like that for HitBTC, though. At the same time, one can’t deny the possibility exists, even though it would serve no real purpose. A lot of frustrating things are going on with HitBTC and USDT, that much is evident. The “currency operations not available” error is certainly worrisome.

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The past few weeks have been pretty busy for Tether.The company has printed a lot more USDT than people would like to see. Even today, things are still firing on all cylinders. With another 50 million tokens in circulation, the speculation will only intensify. These new tokens once again coincide with a new Bitcoin price increase.

People have given up on tracking the number of Tethers brought into circulation these past few weeks. The company keeps adding batches and batches of new funds whenever they see fit. Over the past 24 hours, 50 million USDT were brought into circulation. That means the company needs to have $50m worth of financial assets to back up this demand. So far, that still seems highly unlikely. Especially when the company still doesn’t undergo a proper and legally binding independent audit.

Tether Presses are Printing More Money

The big question is where this demand is coming from. Rumor has it Bitfinex and Tether collude to artificially push up the Bitcoin price. So far, these claims have not been proven, despite the voices growing louder every single week. It is uncanny how most of the”print jobs” occur whenever the Bitcoin price seems to go up shortly afterward. Coincidence is an interesting concept, for those who believe in such things.

There are also allegations as to how these USDT are not backed by fiat currency. Instead, Tether is potentially issuing tokens in exchange for cryptocurrency payments. That is not exactly illegal either, although it would certainly skew the image people have of this company. After all, they never said all assets have to be backed by fiat currency alone. Nor do all tokens need to be redeemable for fiat currency either. It is a very interesting construction, which may eventually blow up in people’s faces.

Rest assured these 50 million new tokens will cause a lot of discussions. It is evident Tether faces a ton of scrutiny right now, which is only to be expected. Their business model raises questions and their day-to-day operations appear shady. Until there is any evidence to back up such claims, however, they are nothing but rumors. It is still possible something nefarious is going on, but no one can say for sure right now. This will not be the last time we touch upon this story either, that much is rather evident.

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The shenanigans surrounding Tether are far from over, by the look of things. More specifically, the company decided to issue another 10,000 USDT out of the blue. Most of these issuances coincide with a major Bitcoin price pump. Proving something nefarious is going on is pretty much impossible at this point. However, it remains a highly controversial topic of debate, that much is evident.

Tether is quickly becoming a company non grata in the Bitcoin world. Many conspiracy theories involving this company exist right now. That in itself is not surprising, as there is some shady stuff going on, to say the least. The company keeps issuing new currency on a regular basis, which often results in the Bitcoin price going up again. This is not just a mere coincidence, but a major bubble waiting to burst sooner rather than later. How all of this will play out, remains to be determined, though.

More Tether Concerns to Deal With

Their latest issuance of 10 million USDT raises a lot of questions. It happens right when the Bitcoin price is starting to push toward $10,000. Many people assume it is these new USDT which will push Bitcoin over the edge. Whether or not that will be the case, remains to be determined, though. A lot of money has been going from Tether to Bitfinex and also Poloniex and Bittrex by the look of things. Some users are pointing out there are a total of 20 million new tokens and not just ten million. A very worrisome development, to say the least.

The CEO of Bitfinex and Tether is one and the same person. This shows there may be some real collusion between both entities. Proving this is the case isn’t as easy as one would like it to be, though. One thing we do know is how the new 10 million was sent to Bitfinex directly. This cannot be coincidental whatsoever, especially as it is not the first time this has happened. At this rate, Bitfinex will quickly become the new Mt. Gox. That is a situation everyone is looking to avoid first and foremost.

All of this paints a very worrisome outlook for cryptocurrency as a whole. While Tether claims everything is legitimate, their refusal of an independent audit certainly suggests something else. With the new tokens now flowing to other cryptocurrency exchanges as well, things are not looking all that great. It would certainly explain the surge of some altcoins as of late. There is plenty of reason for getting concerned over what Tether is doing these days. We can only hope none of this blows up in our faces over the coming weeks and months.

The big news of last night was how Tether allegedly got hacked. In a statement issued by the company, they explain how almost 31m USDT were removed from the Treasury. This incident occurred on November 19th, and the money was sent to an unauthorized address. None of the stolen tokens will be redeemed, but the company hopes to recover the money regardless. For now, the money still appears to be in a Bitcoin address. It is unclear how this money will be spent, assuming that is even the objective.

This whole Tether issue is pretty worrisome, to say the very least. We have reported on this company’s odd behavior for some time now. Whether or not there is a malicious intent behind this attack, remains to be determined. The company did not explain how the money was moved from the Treasury exactly. That is always a bit worrisome, as companies should be transparent regarding what is happening. The stolen tokens have effectively been flagged and won’t be redeemable for USD.

The Plot Thickens for Tether

For the time being, the Tether back-end wallet service is suspended. This is part of the ongoing investigation to determine what caused this problem. Secondly, the Tether “chain” went through a hard fork to ensure the stolen funds can’t be moved. Considering how USDT is issued on Omni, new builds are being provided to Omni Core to make this happen. All individual users and integrators need to update their client as soon as possible. This is similar to how Ethereum bailed out The DAO investors when a similar issue occurred.

This new software will also cause a consensus change. It is a temporary hard fork to the Omni Layer. Any tokens belonging to the flagged bunch will not be accepted. This should prevent the attacker from successfully moving the USDT balance to an exchange. Otherwise, they could easily convert it to BTC or different altcoins and cash out that way. It is possible this may still happen, depending on how fast all integrators upgrade their clients. It is a very worrisome turn of events, to say the very least.

Some sources claim this was not a hack at all. Instead, they are fearful Tether is working toward a major exit scam. Their rapid issuance of new tokens, previous issues with converting back to USD, and now this certainly makes for a strange year for Tether. Whether or not the company can recover from this incident, remains to be determined, though. The company confirms all other assets are still backed by US Dollars in reserve. For now, everyone will have to believe that story. It may be the truth, though, but no one knows for sure at this point.

Tether is one of the companies causing some drama in the cryptocurrency world right now. The company has issued around 50 million USDT this week alone. All of this money is used to push up prices of different cryptocurrencies on Bitfinex, by the look of things. It is evident this is causing some problems for a lot of people. Whether or not these concerns are justified, remains to be determined.

This has been a pretty eventful week for Tether, to say the least. Earlier, the company issued another 20 million USDT tokens. All of this digital money needs to be backed by collateral in US Dollars. Whether or not that is the case right now, is perhaps the biggest mystery in all of cryptocurrency. There is another problem people need to take into account, though. Last night, another 30 million USDT was added to the existing supply.

USDT Supply Continues to Increase Quickly

It is unclear where this sudden demand is coming from. That is, assuming the demand is legitimate, to begin with. There are some wild theories circulating on the Internet right now. No one can deny the USDT brought in circulation help keeps the Bitcoin price stable right now. Who controls this funds exactly, is a different matter altogether. It is certainly possible this influx of new tokens, is completely legitimate, although it is doubtful right now.

Surprisingly, these new tokens do not seem to affect the trading volume all that much. HitBTC is still the largest market, following by Poloniex, and Bittrex. Very few of the coins seem to make their way to Bitfinex right now. That is, assuming there is no secret order book containing information to explain this situation. There have always been some correlations between Tether and Bitfinex. Proving nefarious activity is difficult, though, and should be considered speculation at this point.

Overall, there is a reason to be concerned about the USDT supply right now. With so many new tokens being added in quick succession, things are not looking great. Then again, the company will hopefully have a decent explanation for this development. Right now, over 564m USDT exist. A staggering amount, to say the very least. Around 70% of those tokens are traded in daily volume right now. The demand seems genuine. Whether that is really the case or not, remains to be determined.

Tether is one of the most remarkable companies in the cryptocurrency space so far. Their business model revolves around issuing digital tokens pegged to fiat currency. Especially the USDT token is often used on cryptocurrency exchanges. Big was people’s surprise when the company introduced another 20 million USDT out of the blue. This move coincides with the Bitcoin price retracing over the past two days. It is not the first time we see these “coincidences” become apparent either.

There have been some questions regarding the behavior of Tether as of late. All of their digital tokens need to be backed up by the same amount of fiat currency. According to their latest financial report, things seem to add up. That was somewhat surprising, considering the company issued a few million new tokens in the same period. At that time, some people assumed it was done to prop up the Bitcoin price. Whether or not that is the truth or not, remains to be determined.

More Suspicious Behavior by Tether

Just last night, another 20 million USDT were brought into circulation. Once that happened, the Bitcoin price immediately recovered by $150. All of this seems to be somewhat “too convenient” to be a coincidence. Then again, if the financial statements add up, there is nothing to be concerned about. The bigger question is why these “cycles” seem to repeat itself during times at which the Bitcoin price is struggling. Right now, the price has recovered most of its losses sustained over the past 48 hours.

All of this makes Tether look pretty suspicious, to say the least. Moreover, Bitfinex isn’t entirely without blame in this regard either. Both companies seem to be working together quite well in an effort to pump the Bitcoin price. Creating artificial demand and trading volume isn’t an acceptable course of action, though. Sooner or later, things will effectively fall apart. Bitfinex will exit the US market very soon as well. There are far too many coincidences to think this is not coordinated in one way or another.

Rest assured a lot of people will keep a very close eye on Tether moving forward. There are a lot of concerns regarding their company and the rate at which they issue USDT these days. While it may be doubtful we will see another Gox affair, things aren’t looking that positive either. It will be interesting to see how all of this plays out in the coming weeks and months. New USDT in circulation always leads to a Bitcoin price push. It may be a coincidence if you believe in that kind of thing.

The past few weeks have been quite problematic for the Tether project. Pegging digital currencies to a fixed US Dollar rate has proven to be quite challenging. Things only get worse when your banking partners no longer process transactions. It now turns out the Apple App store removed the platform’s application briefly as well.

Tether Continues The Uphill Battle

Tether is starting to face a lot of major problems in quick succession. A few weeks ago, it became apparent the company’s Taiwanese bank accounts could no longer honor USD withdrawals. This is due to an ongoing Taiwanese banking reform. Until the matter is resolved, converting USDT to USD is subject to a high premium across cryptocurrency exchanges. Not an ideal situation for a currency pegged to the US Dollar.

To make matters even worse, Apple removed the company’s mobile app last night. The Tether app was no longer available all of a sudden. There was no explanation for what happened exactly, though. Luckily, it appears the app is back right now, which is somewhat positive news.  However, these developments may end up hurting the USDT value even further as time progresses.

It is safe to say there is a lot of uncertainty regarding Tether right now. Although the company has enough funds to convert USDT to USD, they can’t do so themselves. Unless they find a new banking partner, that is. Setting up a new relationship can take weeks, if not months, though. A lot of banks remain wary of cryptocurrency-related projects, even to this very day.  Considering there are 65 million USDT in circulation, the situation needs to be resolved sooner rather than later.

What Does the Future Hold For USDT?

This begs the question whether or not currencies such as USDT are even necessary. While it is true they provide some form of value, converting it back to fiat is problematic. This begs the question whether or not this intermediary step is even necessary. After all, users are currently losing money when converting USDT to USD again. Things are not looking great for Tether right now, and we can only hope the situation is rectified soon.

Luckily, Apple has restored the Tether app in the App Store for the time being. It remains unclear why it was removed, though. The decision does not appear to be linked to the ongoing financial issues the company is facing. Now that the app is back in the App Store, that is only less thing to worry about for the team. However, all of their other issues remain to be solved, creating a very uneasy situation.

A lot of cryptocurrency enthusiasts will be aware of the problems faced by Tether. The company provides digital tokens linked to their native fiat currency value. However, it appears this peg is no longer being maintained, at least where Tether USD – or USDT – is concerned. That is not a positive development by any means, as this situation needs to be addressed sooner rather than later.

Tether Can’t Maintain USD Peg

Things have been unraveling for Tether over the past few weeks. This is partially due to funds being frozen in their Taiwanese bank account. Ever since the US introduced more strict KYC and AML requirements, so other countries have had to follow suit. Taiwan is one of the exceptions so far, which means companies like Tether can’t convert USDT to USD transfers right now. Other companies affected by this problem include Bitfinex and BTC-E.

This is causing issues for the USDT trading pair, to say the least. Pegging a digital token to a fixed fiat currency value is not an easy feat. Tether holds 1 USD for every USDT in existence. However, a lot of that funds are effectively frozen, as mentioned before. In theory, every 100 USDT is worth 100 USD, but that does not seem to be the case right now. To be more specific, users have to convert USDT through third-party exchanges if they want USD funds in their bank account.

One of the exchanges providing this conversion service is Kraken. However, users need to pay a  premium price for converting USDT to USD. Right now, that premium sits around 7%, which may continue to increase as time progresses. It is a simple matter of people providing a service others need. Paying a premium price is not uncommon in this regard. Unfortunately, it also means every USDT is worth US$0.93, instead of US$1.

There are very few other options to convert USDT to USD right now. Tether and Bitfinex are the two main service providers. However, they both suffer from banking issues, leaving USDT holders with very few options. Paying a 7% premium is not something people will enjoy, but it is their best option right now. It is equally possible to hold onto USDT and hope for the best, although that may take weeks, if not months.

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Tether.to is a custodian service, priding itself upon being transparent at all times. To achieve this goal, the company makes their reserves balance sheet publicly available. It appears there is some cause for concern, though. Right now, there is a near-million dollar discrepancy between their fiat reserves and the number of tethers in circulation. A very unusual situation, that much is certain.

Looking at the Tether.to transparent balance sheet, it is clear something is amiss. The company issues USDT tokens, which have their value pegged to the US Dollar. Right now, the current liabilities balance us US$42,313,582.47, which is quite a substantial amount. However, their assets only represent US$41,371,231.12. The gap between these two numbers is nearly one million, which is marked on the page as negative shareholder equity.

Tether’s Discrepancy Is Cause For Concern

This is a very strange situation for the Tether.to service. Their whitepaper states the balance of fiat currency will always be equal to the number of tethers in circulation. It is also possible there are more fiat reserves than tethers, as is the case with EURT. The company has 1,415.54 EUR in assets, yet only 1,248.99 EUR in liabilities. In this case, their fiat reserves are higher than the number of EUR tethers in circulation.

It is unclear why the gap for USD Tethers is so large at this time, though. The company’s term of service indicates Tether has no contractual obligation to exchange Tethers for money. Moreover, they do not guarantee any right of redemption of Tethers for money. While these terms have been in place for some time, it paints somewhat of a worrisome picture. Then again, this discrepancy might have a logical explanation as well. So far, Tether.to has not issued any official statement regarding this matter.

For a company claiming to remove counterparty risk, Tether has some things they need to clarify. With this current reserve sheet, buying USDT seems to be a bigger risk than it should be. One advantage is how the company is transparent about his situation, though. Dealing with a fiat reserves discrepancy is quite worrisome, to say the least. Some people on Reddit feel Tether.to poses as much risk as Mt. Gox and Bitfinex did at one point. Such statements may be overstating things, though.

This situation highlights one of the main problems with custodian services. Tether is a valuable service, yet it still exposes users to unnecessary risks. Anyone holding USDT right now runs the risk of not being able to convert them back to US Dollars. It seems unfeasible to peg USDT to a US$1 value until this discrepancy is resolved. We can only hope Tether.to issues a statement regarding this gap sooner or later.

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