The community has been sceptical about Tether for a long time now and that is why it is advisable not to hodl it for too long, this is without adding that they can freeze your usdt, even if you have it in your non-custodial wallet.
Never hodl Tether. Just use it for quick transactions and convert it immediately. This is because nobody knows when the can of worms will be exposed.
This allegation has been going on for so long.
I really hopeful that USDT will do a proper audit after the US enforce the GENIUS act to make these stablecoins issuer much more transparent according to the law.
This is also why I prefer using USDC these days.
A company that has not been fully audited cannot be trusted. These allegations have not been verified because an independent audit has not been carried out. People who keep a large chunk of USDT are taking a blind risk. Until the government verifies that the 1:1 dollar ratio is true, people need to deal with Tether caution.