Famous last words. How can you know what Bitfinex is doing? How can you know what the true reserves of Tether's USDT really are?
How can you know what is bitstamp doing?
How about Kraken?
How about the biggest altcoin exchange out there, Poloniex?
I already told you that Poloniex does all trades to USD in USDT. Go to Poloniex and look for yourself if you don't believe me.
Those other exchanges don't apparently use USDT by default. But Bitfinex and Poloniex do, so that is a lot of speculator money that could go poof if USDT is ever found to be fraud. Speculators would refuse to buy USDT, so its value would plummet.
Did you not click the links in the OP about the recent news stories?
I am well aware of the news, their bank, the withdrawal, ... that is why I said what I said.
Which news are you referring to specifically and do you know how it applies to what I wrote in the OP? Explain your understanding.
The risks, that you are raising today is a drama and nothing more. because nothing has changed in the past 6 or so years with bitcoin exchanges. they are still the same shady businesses that can run away at any moment.
the question is why spread the drama now?
Because Bitfinex is making news that they can pay back the former thefts which no one thought to be mathematically possible, so it means that Bitfinex is trying to raise confidence so more people will put their money there, so it indicates they need money. It also indicates they stole the money from Peter to pay Paul. The likely source of the money is perhaps coming from printing USDT out-of-thin-air.
And the news about Wells Fargo blocking their wire transfers is another warning sign that a default is developing.
You malign me, because you don't see the connections. Ostensibly because you aren't so astute or you have an agenda against me.