I've been sort of following the situation, At least they are protected against a bank run because they don't do withdrawals, only deposits. I think that at a bare minimum, if they are doing exactly what they say they are doing with no mistakes, they are extremely vulnerable to getting a bank account frozen.

I think this is a good overview of the basic numbers and banking situation: https://ftalphaville.ft.com/2017/09/15/2193370/crypto-tether...