They recently released “details” and less than 3% of Tethers are backed by actual USD.

I don't like Tether as it's no different from fractional reserve banks, but as long as the NYAG remains content with what she sees, it's sound money. Been waiting its supposed collapse for half a decade now with bated breath, but it still has yet to happen.

Disclaimer: I own zero USDT and an insignificant amount of USDC, being rather skeptical on "stablecoins" in general.

NYAG stated that "Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie" and banned it entirely from New York.

"I don't like Tether as it's no different from fractional reserve banks,"

That reserves don't add up to the currency in circulation is somewhat similar to a central bank but the similarities end there and they are basically nothing alike.

Will a government bail out Tether when its institution goes bust? If not then, then it is far worse than fractional reserve banks.