Tether’s website assured users: “Every Tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USDT is always equal to one USD.” But after the meeting, the site’s wording was changed to read: “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.” In other words, Tether’s reserves could be anything it wanted.
