USD₮ether Insolvency Calculator.
Tether has likely been insolvent for out of () days based on the assets reported in its attestation.

For more details, see the Methodology section below. View the Changelog for methodological changes made since release.

To make different assumptions about the relative mix of Tether's asset holdings, change the percentages below (representing each asset's portion of Tether's full portfolio) to view Tether's hypothetical portfolio performance over time:

Default allocations
Alternative allocations

Note: When the sum of the asset allocation is less than 100%, the remainder of the assets are presumed to be static -- neither increasing nor decreasing in value. See the Methodology section for more details.

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Tether (USDT) is the world's largest cryptocurrency 'stablecoin,' with over $60 billion in reported assets. The purpose of stablecoins, which are purportedly backed 1-to-1 with a fiat currency like the U.S. dollar, is to increase liquidity in crypto trading, enable safer margin investing, and decrease settlement times in comparison to holding fiat currencies.

Tether's web site claims: "All Tether tokens are pegged at 1-to-1 with a matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by Tether’s reserves." However, despite years of promising to do so, it has never released an audit of its financials. It instead relies on attestations, a far lower standard of evaluation that simply states whether Tether has funds in its accounts exceeding its liabilities at one specific moment in time.

In February 2021, Tether (along with its sister company Bitfinex) was fined $18.5 million by the New York attorney general and banned from servicing New York-based customers, because 'Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines...Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie.'

Then in October 2021, Tether was fined $41 million by the Commodities and Futures Trading Commission, which stated that 'Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018.'

Both investigations found that Tether had deceptively transferred funds from Bitfinex into its own accounts in advance of attestations or verifications. As the CFTC settlement press release noted: 'Tether retained an accounting firm to perform a review of Tether reserves on a date Tether selected in advance, and Bitfinex transferred over $382 million to Tether’s bank account in advance of that review.'

Tether's own Terms of Service paint a very different picture of USDT's convertibility than its marketing materials do. Buried in its fine print is the statement: 'Tether reserves the right to delay the redemption or withdrawal of Tether Tokens if such delay is necessitated by the illiquidity or unavailability or loss of any Reserves held by Tether to back the Tether Tokens, and Tether reserves the right to redeem Tether Tokens by in-kind redemptions of securities and other assets held in the Reserves.'

shareholder equity anomalies

Tether's asset allocation isn't the only unconventional aspect of its finances. Tether's reported shareholder equity (or 'shareholder capital cushion') - again, its assets minus its liabilities - is remarkably static over time, especially in comparison to the broader financial markets - except for dates on which it releases its quarterly reserves attestations. On those dates, Tether has reported significant, abrupt changes to its shareholder equity.

An initial, seemingly plausible interpretation: perhaps Tether only updates its shareholder equity data once per quarter, based on its most recent attestation report. However, this interpretation is not possible: shareholder equity is simply the difference between assets and liabilities, both of which Tether's Transparency page updates on a daily basis, and those figures often change significantly. This makes the near-static nature of Tether's shareholder equity figure between attestation release dates, in stark contrast to its sudden shifts on those same dates, entirely inexplicable.


Tether's asset self-reporting, especially in comparison to its stablecoin peers such as USDC and BUSD, is extraordinarily light on details. Due to Tether's continued strategy of maintaining opacity around the exact constitution of its holdings, constructing a hypothetical portfolio necessarily entails making some assumptions and arbitrary decisions and is, therefore, subject to potential errors of judgement (not to mention of calculation). Disclaimer: These errors may be significant. If you see any, please do get in touch and I'll do my best to quickly update.

Here is how I have constructed this porfolio:

Also note that, when calculating the number of hypothetically insolvent days, I am only including dates for which I have Tether data. On some dates either Tether never updated its Transparency page or my crawler was unable to obtain the data for that date, in which case this data is left out of the insolvency calculation.