It's not a surprise that Tether don't have equivalent reserve for its stablecoin. Even the Tether team has indirectly accepted it that they count the money they loaned as the reserve for the token as well Bitcoin and Gold. Bitcoin and Gold are relatively safer but loaned amount could default anytime. Some reports tell even these three would add up to 100% of Tether and they are being minted out of thin air. Not being able comply with EU rules and taking time to have US compliance proves that.

Tether is a risk but the team has promised to keep improving how it operates and have an actual audit soon. There are not much better option for traders as alternative to USDT, there USDC but it doesn't even trade with 10% of what USDT does.