[askmike]

The money wouldn't be lost, they have a good relationship with Tether who can simply freeze and reissue.

[14]

I’m sorry I know nothing about Tether is it some sort of centralized money exchange? Sounds like it but I don’t know? Thanks

[X6S1x6Okd1st]

They issue tokens on various blockchains. They've encoded in the smart contracts that they can freeze funds.

[colinmhayes]

Tether is a stablecoin that is controlled by a company that can freeze it. So yes, it's centralized.

[lugged]

Tether is a crypto that attempts to peg itself to USD using dodgy corp debt and other paper money.

[charwalker]

So they have $1 per Tether sitting in a bank somewhere?

[jkhdigital]

Tether is more like a fractional reserve bank at this point, so they should at least have $1 in reasonably liquid assets for every Tether issued. Which, in all honesty, is a more efficient way to recycle savings into the supply of capital—it would be tremendously wasteful to just park $60+ billion in a risk-free bank account. Of course, the problem is that they’ve repeatedly lied about the state of their balance sheet and misled the rubes into believing this silly fantasy about bank accounts full of idle cash.

[rchaud]

> So they have $1 per Tether sitting in a bank somewhere?

You can get your Tethers back if you're moving 10-figure sums. Let's leave it at that.