It really comes down to what kind of loans Tether has accepted. They haven't disclosed this information. If Tether gave out a significant amount of USDT for B

It really comes down to what kind of loans Tether has accepted. They haven't disclosed this information. If Tether gave out a significant amount of USDT for Bitcoin without backing it in some other way, it means Tether isn't actually backed by the USD. Even if they lent out Tether for USD, they might have used BTC as collateral/risk assessment. The fear is that Thether is held up by a loan of BTC and BTC is held up by in some part by the stability of Tether.