Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Paolo Ardoino, the CEO of Tether, the issuer of USDT, which is the largest stablecoin globally by market capitalization, has criticized Digital Currency Group (DCG), the troubled crypto company currently embroiled in a lawsuit from the New York Attorney General (NYAG).
In a post on X dated March 11, the CEO ridiculed DCG following the release of new court documents. The filings claim that the CEO was short “400 million” USDT amid speculation regarding its stability when the crypto hedge fund Three Arrows Capital (3AC) went under. DCG and Barry Silbert were concerned that Tether “would blow up” and opted to hedge risks to safeguard the firm.
Tether CEO Targets DCG
Reflecting on the circumstances from mid-2022, Ardoino stated that the effort merely underscored Tether’s robustness, especially when “almost all the rest of the crypto industry was melting down.”
Remember when numerous hedge funds shorted $USDt on secondary markets, attempting to instigate a bank run?
Their only outcome was demonstrating Tether’s resilience while nearly the entire crypto sector was collapsing.
Tether managed to redeem and pay $7 billion in 48 hours and more… pic.twitter.com/HZZXhKkr6b— Paolo Ardoino
(@paoloardoino) March 11, 2024
Related Posts
The CEO highlighted that despite the surge in redemption requests, the company successfully redeemed and disbursed $7 billion within two days and an additional $20 billion in under a month.
Furthermore, he asserts that every token in circulation is entirely backed by cash and other liquid reserves, including treasuries. Consequently, each of the over 100 billion USDT in circulation can be exchanged for cash at any time.
Shorting USDT Is Not A “Brilliant Idea”
Now cognizant of the developments at DCG, and noting that the firm is currently in distress and facing a lawsuit from New York regulators for, among other allegations, fraud, the CEO remarked that “shorting USDT turned out to be an idea as brilliant as accepting FTT as collateral.”
FTX, a bankrupt cryptocurrency exchange established by Sam Bankman-Fried, issued FTT. Genesis Global, a subsidiary of DCG, had exposure to FTX. The downfall of FTX has been partially linked to its dependence on FTT as collateral.
The post Tether CTO Aims Dig At DCG For Doubting USDT’s Resilience appeared first on Cryptonews.
