Comment by shermanmccoy

I think the ponzi continues to work for now, the arbitrageurs can cash out, while the illusion that tethers are backed prevails. So indeed if no one does redeem these USDT as I keep reading could the arbitrageurs just slowly buy the cross to USD over a period of time after the trade? Alternatively USDT seems to be a proxy-currency to move across exchanges and networks, so it may indeed be transferred off to other pairs/tokens to fund alternative trades...