Tether was allegedly created by Bitfinex to raise capital after the latter was hacked last year and had to find money to reimburse the customers. In April, Bit

Tether was allegedly created by Bitfinex to raise capital after the latter was hacked last year and had to find money to reimburse the customers. In April, Bitfinex was cut off from the US banking system and to this day it had no means to send and receive USD. The supply of tether has expanded 12x under suspicious circumstances* to ensure Bitfinex will have some form of liquidity, without which they would have ended up like MtGox already. *: There is zero evidence to suggest the tokens are backed by fiat. Nor have I come across anybody who came forward with evidence that they have managed to redeem tethers for fiat.