The problem though is that if ether really were a "magical fountain of fake dollars" that would be reflected somewhere in the market price of tethers. Look at the price charts for tether->USD it's pretty nominally 1:1 https://cryptowat.ch/markets/kraken/usdt/usd
The most contrarian one could argue is that people who sold bitcoin for fraudulent tethers haven't tried to withdrawal them /at all/ and therefore the tetherUSD liquidity hasn't been tested.
Bittrex has a public pair between Tether and "True USD" [1], but their fiat USD market is not yet available to the public, and I don't know where we can find pricing data for the non-public market.
What is "very restrictive"? Cap on max amount for a given period?
Kraken offers a USDTUSD pair. How is that hard at all? https://blog.kraken.com/post/206/kraken-announces-support-fo...
Not true, bitfinex reenabled usd withdrawals in November.
Or they're just matched by the number of people with 'legitimate' tether who haven't withdrawn?