Let's be straightforward: the risk of reserve asset fraud in stablecoins is not only real but has indeed happened in history. This is not a hypothetical risk; it's a matter that must be acknowledged if it occurs.

Why does this happen? We need to look at it from three perspectives.

**First Perspective: Business Motivation**

How do stablecoin companies make money? It's simple—they use the USD bought by users to buy stablecoins for investment, earning interest. Take a major stablecoin issuer as an example: the company has only about 100 employees, yet last year, it reported a net profit of $13 billion. This is essentially a "free lunch" business.

Because of this, the motivations arise:

**Fraud Motivation**—If I only reserve 74%, the remaining 26% is like printing money out of thin air, which is pure profit. Who wouldn't be tempted?

**Risk-taking Motivation**—Since the money is used for investment to earn interest, why buy low-yield U.S. Treasuries? Why not go for high-risk, high-reward assets, such as other cryptocurrencies or corporate loans?

**Second Perspective: Lessons from History**

Some major stablecoin companies have indeed done these things. When the New York Attorney General sued in 2019, their lawyers even admitted that only 74% of the issued stablecoins were backed by actual assets, and that 26% was a hollow check.

By the end of 2024, the situation has improved but still has issues. According to data from the New York Federal Reserve, this company still invested about 18% of its reserve assets into "other non-stablecoin crypto assets and various loans"—areas that fall into gray zones and shouldn't be touched.

**Third Perspective: Why is it so hard to do this now?**

In today's environment, trying to do it again? Much more difficult. On-chain transparency is increasing, regulatory scrutiny is tightening, and a major collapse would have a huge impact. No matter how strong the motivation, the risks must be carefully considered.