[rland]

Tether’s operators have said the token is backed by a basket of dollar-based assets equal to the size of the tokens outstanding, but it has not released granular details of these reserves

Trust me, dude!

Meanwhile:

Stablecoin holders could not claim deposit insurance to recoup any losses and operators were not able to access bank standing facilities

This (the losing all of your money, thing) happened in 1929 to a lot of people. Yes, it is possible to lose all your money. Yes, this can go to zero. There is a long, long way down. I just don't see how anyone in their right mind has the appetite for risk to stay in Cryptosecurities right now.

[overtonwhy]

"The order further finds that Tether and Bitfinex’s combined assets included funds held by third-parties, including at least 29 arrangements that were not documented through any agreement or contract, and that Tether transferred Tether reserve funds to Bitfinex, including when Bitfinex needed help responding to a “liquidity crisis.”"

https://www.cftc.gov/PressRoom/PressReleases/8450-21