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If a tree falls in the woods and no-one is around to hear it does it make a sound?

..am I misunderstanding your argument or are you saying that if the authorities aren't investigating wrongdoing it can't be happening?

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No, the authorities specifically said it was backed 1:1 like Tether said, until Tether became a self-referencing meme of itself and NY moved on them when it wasn't. Basically most of the time, people were wrong about Tether.

You're drawing a conclusion that isn't there. The AG is not never said they reviewed Tether's books and it was indeed 1:1

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