You're missing this little bit: Tether is not asking questions (of a KYC/AML nature) at a scale where they are required to be asking those questions, and the only people who would agree to work with them turned out to be criminals (for not asking those questions), who skimmed off money from Tether in the process. But don't worry, because the government will totally make them whole because there is no way that innocent little Tether could have known of all the illegal shenanigans going on… breaks down in riotous laughter