To be clear, I am 100% on board with the possibility that Tether is a massive fraud. But there's a broader context of shenanigans here that is underreported. For example, consider the way Chinese stocks are listed on US exchanges.https://twitter.com/mathewi/status/1446468360745652226 …
Isn't this ownership unenforceable under Chinese law? That is my understanding of it.
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The ownership of the WFOE is enforceable, it's just a company owned by a foreign entity so it works the same as everywhere else (mostly anyway). The legally questionable part are the VIE contracts, between the WFOE and the VIE entity
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This is why it's important to look at what's in the VIE and what the listed company has direct ownership over. For instance
$NIO has a VIE, but it has no material assets or business in it, so in this case you actually own the entire business when you buy shares in the Cayman co - Show replies
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