(1) Bitfinex/Tether used ur money & money that did not exist to speculate. And NO, this isnt what banks do. Plus, they do not have a banking license.
(2) It went well originally but then turned sour so they had to conceive new money out of thin air
(4) Any larger amounts of money held at #bfx therefore likely had little other choice (because maybe it was procured illegally, so it cannot just flow back into regulated world)
Scenarios from my last article on medium still valid IMO. /end