That's not how guarantees work. I'm sure they might try to argue that in court, but no I don't think that would have any impact.
RE: The fear around the Tether situation is overblown, and here's why: - by @voiceofreason
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The fear around the Tether situation is overblown, and here's why: - by @voiceofreason
Who is gonna hold them to it? These exchanges are not regulated. In whatever court they happen to be sued in, they could argue that they are liable for every tether on their exchange at the time of the guarantee. All that aside, if they had $2 billion, which they very possibly do, they could still cover every tether in existence. I mean you are reaching pretty far to try and come up with the most extreme possibility that makes this situation dire.
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You say this, and you act like I'm the one reaching. You don't think exchanges are legally liable for their guarantees? Then what's the value in such a guarantee in the first place? There was no "up till now" clause in their statements.
You don't think national courts will see these exchanges as under their jurisdiction if they have customers in those countries?
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I merely provided a way that they could make a counter argument in your doomsday scenario where every other exchange tried to take advantage of a good will statement they made to protect the interests of their current customers. Whatever the courts (yes it would be plural) decide to do in that situation is anyone's guess (including mine).
The kind of arguments you are making in this entire debate are the same kinds of arguments made by people who say that if bitcoin collapsed it would pull down the world's economy. Even though there is vastly more evidence countering those beliefs. However, it can never be known for certain unless such an event actually happens. Which both that one and this current one you are suggesting will likely never happen.
Which is unfortunate for purposes of this debate. ;)
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