I hope that ends the spreading of FUD - claiming that bitcoin and other cryptos are propped up by the printing of fake tethers - which seems to spread here every time there is a sharp rise in prices.
Page 4 of the agreement:
> 20. Because of Tether’s inability to conduct significant banking activity during this time, it could not itself hold dollars sufficient to back the hundreds of millions of new tethers that had entered the market. Until September 15, 2017, the only U.S. dollars held by Tether ostensibly backing the approximately 442 million tethers in circulation was the approximately $61 million on deposit at the Bank of Montreal.
That's 14% of the cash required to back the issued Tether.
It shows that Tether had no desire to correct the situation with the unbacked Tethers. Why does it matter why the Tethers were unbacked? The fact is that they were unbacked and Tether continued operating as if they were.
Why would anyone trust an institution that has already demonstrated they don’t care about backing and, moreover, that they’d rather hide that fact as much as possible until forced to reveal it.
> Jason Weinstein, a partner at Steptoe & Johnson and counsel to Bitfinex and Tether