Yeah I think USDT is one of the few things in crypto, along with BTC, ERC20 tokens, Coinbase, Binance, BitMEX, OKEx, and Huobi, that is too big to fail.
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but the market has accepted tether for what it is, a stable medium of exchange (backed or not). Why would it collapse? There is already clear demand for it.
coindesk.com/tether-usdt-ru
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FWIW I think we're a little further than that.
We've had the 1 bad tweet before, USDT crashed to $0.90, and then...
...it recovered. The reason is that it was still redeemable. The case where USDT really crashes is if liquid reserves go below redemption demand.
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Note that even with some assets seized, this is significantly less likely with:
a) funds raised by LEO
b) Bitfinex profits