Finance & EconomicsPartially True
Tether (USDT) reserve-composition concealment (2017-present)
Tether Limited, issuer of the USDT stablecoin, claimed for years that each USDT was backed 1:1 by US dollars held in reserve. Investigations by the New York Attorney General (settled February 2021, $18.5M) and the CFTC (settled October 2021, $41M) confirmed that Tether had misrepresented its reserves — backing was at times composed of commercial paper, loans to Bitfinex, and other non-cash assets rather than pure dollar reserves. Tether produces periodic attestations but has never undergone a full independent audit. The stablecoin continues to operate and is the largest by market cap.