Thats two different things. They are backed by loans to bitfinex, like your money in the bank is backed by mortgages etc. I am not defending this, I think it is

Thats two different things. They are backed by loans to bitfinex, like your money in the bank is backed by mortgages etc. I am not defending this, I think it is a major fuck up (one of many by bitfinex), but again, I do not think they are insolvent and that they will not be able to cover tether liabilities.