This is just a cartoonishly naive take. This is like saying the Fed or JP Morgan is insolvent because they don't have the sum of their balance sheet located in some metal vault with dollar bills inside of it. It turns out having stacks of paper in a metal cage isn't how solvency is defined in 2022.
The truth is easily checkable. I wonder why you're saying stuff that's provably false.
For some time, the website read: “Every tether is always backed 1-to-1, by traditional currency held in our reserves.”
...
In February 2019, this text changed to: “Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, ‘reserves’).”
I hope you understand that after the first statement, EVERYTIME they don't have 100% of the tether backed by currency is fraud. And it wouldn't matter if it was all there now in the same way an accountant is a criminal if they gamble with client funds even if they manage to put all money back before it's missed.
I think some of the most extreme criticism doesn't go that far.
Bitcoin crowd doesn't like less than 100% backing. The argument isn’t that they have nothing.
When Tether had disrupted fiat redemptions and lost banking, people would find the banks they likely moved to by looking at massive increases in the bank’s reported deposits.
They clearly did NOT have any assets when they were pretending to be audited or they would have completed the audit.