You cannot have a bitUSD peg without convertibility to USD at some specific point...
Or a bitBTC peg without convertiability to BTC at some point.
These are futures markets minus the "settlement".
This is much more serious than running an unregistered exchange...
It's such a basic error that it can only be considered fraud when it collapses.
Yes, the BitUSD peg is kind of circular reasoning. It's not an actual USD settlement, but an equivalent value of Bitshares. This kind of reasoning would be valid if both assets (USD and bitshares) had an equal chance of not becoming worth 0 on any particular day of the week, but the fact is, you can't peg assets to each other when both have vastly different risk.
This is not to say that the other aspects of Bitshares, such as the delegate system can't work, it's just the BitUSD peg is running on sketchy concepts.