[USDT]
Tether
High Risk
Holder Protection
0.25 / 1
Periodic Reserves Attestations
0.75 / 1
Financial Audits
0 / 1
Redemption Policy
0 / 1
5.1Holder Protection
For holders of fiat-backed stablecoins, the best form of protection is the issuer being regulated as a stablecoin issuer. The next best option is being regulated as a financial institution. Tether meets neither of these criteria. Tether and its management personnel have claimed that Tether is a regulated entity but this claim arises from Tether’s registration with FinCen as a ‘money service business’ (MSB).
As per FinCen, “The inclusion of a business on the MSB Registrant Search Web page is not a recommendation, certification of legitimacy, or endorsement of the business by any government agency”.
In the event of Tether going bankrupt, USDT holders' assets are not bankruptcy-remote.