I think the fraudulent route to solvency is even simpler than that: 1. Make Tethers out of thin air and sell for BTC 2. BTC price goes up because crypto boom

I think the fraudulent route to solvency is even simpler than that: 1. Make Tethers out of thin air and sell for BTC 2. BTC price goes up because crypto boom 3. Sell enough BTC for USD to back the fake Tethers you made up in step 1 4. Balance sheet now looks legit, and you even have BTC to spare to buy yachts for everyone.