Hacker News new | ask | show | jobs
by crazypyro 3131 days ago
Mt.Gox started having issues withdrawing funds to "real" fiat currencies, people got scared, wanted to pull out their bitcoin, suddenly their account says they have a balance, but there's not bitcoin backing up the balance. (In Mt.Gox case, this was because a significant amount of bitcoins were stolen from their treasury.

Similar thing could happen with people redeeming USDT for USD if they don't have enough to cover the already issued USDT.