See United States v. Blaszczak.

It may be abuse of trust but that's not automatically a crime.

Comments URL: https://news.ycombinator.com/item?id=33115228

Points: 12

# Comments: 1

The equity is a loss, but that's not what I took issue is, which is your evidence free claim that there was a loss on the loan.

https://www.ft.com/content/5eff6c38-9410-45af-94f7-2488b3a87... this also confirms some of it:

>“If bitcoin drops, they give us a margin call [and then] we have to give them more bitcoin,” Mashinsky told the FT in October. He said the loans were typically 30 per cent overcollateralised. The price of bitcoin has since dropped by about half to $30,000. The person familiar with the matter said Celsius had indeed posted more collateral as a result of the falling price.

Sure, maybe everyone's lying, including in sworn declarations. Alex has obviously lied a lot leading up to the Celsius bankruptcy, so I'm not going to say that anything he says must be true. But I don't see any particular reason to doubt the claims here that tether's loan was overcollateralized, called, and liquidated with no loss (and in fact they returned excess collateral to Celsius, as per the court document above "preserve the remaining collateral in excess of the value of the loan"). I do think it's unlikely he'd swear to that specific claim under oath if it wasn't true, as he'd have nothing to gain from it?

If you'd look at the documents filed in the Celsius bankruptcy, you'd see a sworn affidavit that says Celsius stopped providing additional collateral in May 2022:

https://storage.courtlistener.com/recap/gov.uscourts.nysb.31...

>In May and June 2022, Celsius made the difficult decision to forgo providing one of its lenders, Tether, issuer of USDT, a stablecoin, additional collateral and agreed to an orderly liquidation of its loan. During the market crash, Tether issued a margin call to Celsius with regard to an outstanding $841 million USDT loan. Although Celsius had always provided sufficient collateral to support its loan, and had never previously been liquidated by Tether, the Company agreed to an orderly liquidation and settlement of its loan with Tether to preserve the remaining collateral in excess of the value of the loan

Bitcoin dropped around 30% in May-June, so this timeline lines up exactly with the 130% collateralization ratio.

Comments URL: https://news.ycombinator.com/item?id=32825971

Points: 10

# Comments: 1

I'm also not aware of what US law would have been violated by either

1. Coding and publishing the tornado source code

2. Deploying several instances to the blockchain in 2019.

There's no US prosecutions based on creating or operating tornado. The Dutch one has not charged the person they arrested yet, according to https://www.coindesk.com/policy/2022/08/24/alleged-tornado-d..., so I don't know what unlawful actions they think he's responsible for.

Comments URL: https://news.ycombinator.com/item?id=32440853

Points: 1

# Comments: 0

It closed today at $9.23, so it's a fair guess that he's not getting anywhere near 800M value.

Comments URL: https://news.ycombinator.com/item?id=32204761

Points: 23

# Comments: 9

Comments URL: https://news.ycombinator.com/item?id=30061727

Points: 2

# Comments: 0

Comments URL: https://news.ycombinator.com/item?id=30053290

Points: 5

# Comments: 0