[qeternity]

Taking SBF’s word as gospel is about the least informed thing you can do. Do you notice how they say things like “redeemed” and “backing” which are very vague terms. In a normal security, redemption is clearly defined. But Tether isn’t normal. We know from players like Celsius that Tether will issue loans collateralized by crypto. You say yourself it’s likely they have other toxic assets on their balance sheet.

So imagine this scenario:

1. I issue a note for $1B to Tether and they send me 1B USDT.

2. I go about my business, trading crypto, doing whatever, and hopefully I end up with more than 1B USDT.

3. When I redeem, I send my 1B USDT back and Tether retires my note (or sends me back my crypto collateral) likely less some fees.

No actual dollars changed hands. And yet this fits in exactly with their narrative and language.

I mean hell they have issued a huge amount of USDT over weekends when you couldn’t possibly have wired any money (mayyybe some people banked at Deltec and could transfer between accounts, or via Finex…maybe)