That assumption is the key issue: Binance doesn’t have USD banking, there is no way for them to accept USD for which to buy USDT. Exchanges use Tether because

That assumption is the key issue: Binance doesn’t have USD banking, there is no way for them to accept USD for which to buy USDT. Exchanges use Tether because they don’t have banking and can’t accept USD. So the USD has to find its way to Tether by some other mechanism. They claim it’s institutions, which is absurd. No institutional investor would ever give billions to an unaudited offshore entity when they can send fiat directly to legit exchanges. Michael Saylor himself says no institutions are using Tether. So where do the Tethers come from? Maybe it’s not a fraud. But the answer should be very simple, and yet they cannot explain it.