Tether and Bitfinex confirm USDT is not fully backed by fiat, only 74% of tethers backed with cash138

Legal representatives for Bitfinex and Tether confirm the widely held suspicion that USDT is not one-to-one backed by US dollars. Court documents confirm tethers are only 74 percent backed, and those holding tokens are “subject to the risk of default, insolvency, inability to collect, and illiquidity.”

In February of 2019, Tether updated the content on its website to specify that USDT reserves “may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

Original source
https://cryptoslate.com/tether-and-bitfinex-confirm-usdt-is-not-fully-backed-by-fiat-only-74-of-tethers-backed-with-cash/

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