It's true I don't understand how tether works and I'm not sure anyone does apart from insiders. I'm fairly sure it's not just send them 1 US$ and they issue 1 tether and hold the dollar anymore.

Also there's this stuff:

>David Miller, an attorney for Bitfinex said: “Tether actually did invest in instruments beyond cash and cash equivalents, including bitcoin.” https://www.theblockcrypto.com/daily/24139/tether-admits-in-...