Summary of Tether for the uninformed:
1. Their terms state that they owe you nothing in exchange for Tethers you hold
2. This effectively means Tether is backed by nothing. The 1:1 peg with USD is a total farce
Tether must and does at all times reserve the right to refuse to issue or redeem Tether Tokens...
No Representations & Warranties by Tether: Tether makes no representations, warranties, or guarantees to you of any kind. The Site and the Services are offered strictly on an as-is, where-is basis and, without limiting the generality of the foregoing, are offered without any representation as to merchantability or fitness for any particular purpose.
What this means:
Tether can print 1 billion Tethers, buy up 1 billion Bitcoin, and then cash out into dollars. In other words, they have engineered a way to more or less counterfeit U.S. dollars by counterfeiting cryptocurrency.
I hope they go down hard.