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One positive is that the subpeona was apparently dated in December - which is being omitted from lots of these articles! ... if it was much worse, then I guess more news would have leaked and Tether would have crashed more in value already a couple weeks ago.

If it comes to light that they aren't actaully backed one to one. Its going to be a major issue for a bunch of exchanges. There will be market panic and I don't believe too many people will want to have their cash/coins in the market until this is proven one way or the other.

Let's hope not, the conveniance of having access to a fiat alternative instead of wasting time & fees transferring etc is pretty helpful.

I think the exchanges just need to deal with USD and be done with tether.

I hope not! :))