> Is there some nuance I’m missing? Yup. They’ve had attestations. In those, an auditor just looks at an account at a moment in time. So you could, for example

> Is there some nuance I’m missing? Yup. They’ve had attestations. In those, an auditor just looks at an account at a moment in time. So you could, for example: 1. Get a loan 2. Put it in the reserve account 3. Ask accountant to verify the amount 4. Accountant attests to seeing money in the reserve account 5. Afterwards, move money out to pay off the loans Sound crazy? Tether actually did this, it only came out in the NYAG settlement. USDC uses a US accountant, but nothing in the procedures they use would prevent such a scenario. The auditor merely relies on management assertions in an attestation.