Another comment in this thread asked what happens to the backing assets when USD...

		wmf on Aug 25, 2022 \| parent \| context \| favorite \| on: Tether will not freeze Tornado Cash addresses Another comment in this thread asked what happens to the backing assets when USDT gets sanctioned. Imagine if large amounts of USDT get sanctioned so Tether can refuse to ever redeem them, yet they keep the collateral. They could go from insolvent to super-profitable overnight!

Tether will get to keep all the bitcoins and people will be holding the bags.