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There actually isn’t a reserve requirement anymore. That 10% requirement was removed sometime in mid 2020. Frauds that act like a bank or are a bank can last qu

There actually isn’t a reserve requirement anymore. That 10% requirement was removed sometime in mid 2020. Frauds that act like a bank or are a bank can last quite a lot longer than most people realize even if their deposits are lent out, collateralized, or lost altogether. You only know who’s swimming naked when the tide rolls out. From what I see, USDT (Tether), is still one of 6 prominent stable coins on Poloniex. Prominent enough to be listed first. If USDT stopped being worth $1 for too long, I’d assume the exchanges would remove it. According to this chart, Tether has done it’s job fine through the ups and downs. https://coinmarketcap.com/currencies/tether/ https://coinmarketcap.com/currencies/tether/

mamon 6y ago
The lawsuit I cited suggests that two exchanges were actually complicit in the scam - and Poloniex is one of them. Also, since Tether has its bank accounts in Deltec bank in Bahamas, the inflow of $15B to such a small country would be visible in country's foreign currency balance sheets. The official report from Bahamas government shows that this balance is currently around $60B and has actually decreased during 2020. So this $15B worth of newly issued Tethers are not actually backed by USD (those money never reached Tether bank account), they were printed out of thin air.