I quote your second paragraph:

“… the cryptocurrency has steadily kept its USD-pegged value and is trusted by traders all over the world that use it everyday as hedge to keep their value during cryptocurrency bear markets.”

In the final analysis, this is all that counts: market trust. Many economists and pundits thrash Bitcoin, but it continues to gain market trust. I am not saying that Tether is deserving of trust because it is as decentralized as Bitcoin; clearly it is not decentralized.

My point is only that it is in Tether management’s self-interest to keep the trust of the market. If Tether’s managers are crooks, they should have run away with the loot a long time ago. They want to keep it going and growing, and the only way they can do that is by gaining more trust. Lose that trust, and there are several competitors willing to take the number one spot.