Yeah, it's in the NYAG settlement I linked as [3]. At one point, all their money was in Stuart Hoegner's personal Bank of Montreal account (#17 in [3]).
Hoegner (their GC) was the director of compliance at Excapsa, the parent company of the wildly non-compliant Ultimate Bet. That online poker site had a back door where some of their friends could see other poker players cards [1]
I think it's strange as well. There's all this uncertainty surrounding USDT. Why won't people switch to the other stable coins? Makes no sense. USDT markets still have the most liquidity and the peg remains unbroken.
How it is that Tether trades on par with trustworthy alternatives like USDC, Paxos and Gemini, I have no idea.