Can they though?
(1) US persons and entities cannot redeem, period, so that leaves out all of Coinbase doesn't it? [edit] originally I mentioned FTX but of course they're based on Antigua and Barbuda and Hong Kong. [1 - Section 3/ and 3/3].
(2) Only individuals Tether deems as customers at their sole discretion are permitted to redeem. [1 - Section 9/ - "Tether in its absolute and sole discretion may determine that you are a customer of TIL or TLTD"]
(3) Tether may delay redemptions arbitrarily at their sole discretion. [1 - Section 3/]
(4) Tether may substitute whatever is in their reserves in lieu of cash at their sole discretion, and themselves admit to only having 3% of the cash needed to satisfy the "obligations" (and I air-quote say that because ... [1 - Section 3/]
(5) Holding tether tokens is not a claim to any backing assets. Any redemptions are strictly goodwill.
(6) Tether has identified their absconding with all the funds as a risk in their white paper [2 page 10].
This is all on their website. [1] Roughly speaking nobody has tried to redeem any - for obvious reasons. They know they can't.
To your point it's the largest exchanges with their hands in this particular cookie jar, and their fates are entwined. The exchanges are holding the bags, Binance alone has 17,000,000,000 USDT. They won't do anything to potentially upset the peg, and are incentivized to do whatever they can to maintain it. Otherwise, to your point, RIP.
[1] tether.to/legal
[2] https://tether.to/wp-content/uploads/2016/06/TetherWhitePape...
FAQs
1. Firstly sign in to your Tether.to account, then click on Redeem. Fill in the total amount you wish to redeem, select the Tether tokens, the bank and click the Confirm button.
How to redeem USDT coin? ›
Redeeming Through Tether Directly
The most straightforward method for cashing out USDT is going directly through the Tether company. Tether provides a portal for verified users to submit redemption requests for USDT in exchange for fiat currency, including USD.
Is USDT Tether safe? ›
Is USDT safe to invest in? USDT is generally considered safe for investment, especially as a means to hedge against the volatility of other cryptocurrencies. However, like any investment, it comes with risks, and it's essential to consider Tether's efforts to maintain transparency and regulatory compliance.
What is the legal issue with USDT? ›
The legal status of Tether (USDT) was a preliminary issue in a case brought by a fraud victim whose stolen crypto — including Tether — was offloaded through various crypto exchanges after being put through crypto mixers.
How do I get my money out of Tether? ›
Tether withdrawal
- Navigate to your Wallet and click the Withdraw button.
- Select Tether wallet in the “Withdraw from” field.
- Select withdrawal address or add a new withdrawal address. ...
- Enter the amount of Tether you wish to withdraw.
- Click Review withdraw button.
- A confirmation screen will pop up.
To withdraw USDT to a bank account is simple. First, transfer your USDT to an exchange or wallet that allows USDT withdrawals. Once it's there, initiate a withdrawal and provide your bank account details, including your account number and name. The withdrawal process typically takes a few business days to complete.
Is USDT real money? ›
Tether (often referred to by its currency codes, USD₮ and USDT, among others) is a cryptocurrency stablecoin, launched by the company Tether Limited Inc. in 2014.
What is the risk of Tether? ›
Censorship Risk
Tether Limited has proven its inability to maintain a relationship with a US depository institution while also revealing its lack of regulatory compliance, protection of reserves, solvency, and ability to be honest in its transparency reports.
Is USDT the same as USD? ›
USD is an abbreviation for the United States Dollar while USDT, on the other hand, is a symbol used to trade Tether tokens, a blockchain-based cryptocurrency, but its tokens are distributed in exchange for an equivalent amount of fiat money deposited into an established bank.
Is Tether regulated in the US? ›
Despite Tether not being based in the U.S., regulators are able to exert some control on the stablecoin issuer's offshore usage through the Office of Foreign Assets Control (OFAC), the report said.
Quickly and securely, exchange your USDT for dollars. Established in 2013, Independent Reserve is the trusted cryptocurrency exchange.
Why would someone buy USDT? ›
For individuals, USDT allows anyone to transact in a cheap, fast, and peer-to-peer way. By using USDT, users can bypass the hurdles of traditional payment systems, enjoying faster transaction times and lower fees.
Can I transfer Tether to bank account? ›
To withdraw USDT to a bank account, you first need to sell tether in Dubai for fiat currency on a cryptocurrency exchange that supports fiat withdrawals. Once you have exchanged your USDT to USD, you can withdraw the funds to your linked bank account, though withdrawal times and fees will vary across exchanges.
How to exchange Tether to USD? ›
Convert Tether to US Dollar Across Multiple Blockchains
- Select Your Blockchain Network. Start by choosing the blockchain network from which you wish to convert your Tether. ...
- Enter Conversion Amount in USDT. ...
- Complete KYC Verification (if necessary) ...
- Choose USD Payout Method. ...
- Confirm Transaction and Transfer USDT.
Browser
- Sign into Coinbase.com.
- Select My Assets.
- Select your cash balance.
- Select Cash out and enter the amount.
- Select Transfer to and choose the destination.
- Select Review.
- Select Withdraw cash.
How to make a withdrawal request via ACH
- Go to the Crypto.com App, go to "Accounts", open the Fiat Wallet and tap 'Transfer' → 'Withdraw' → USD.
- Review the submission process, and tap 'Got it'.
- Input the withdrawal amount and select the bank account that you are withdrawing the funds to.
