Swan Bitcoin CEO Cory Klippsten criticized stablecoin giant Tether and Jack Mallers, who stepped down as CEO of Twenty One Capital this week, during an interview on The Starting Block podcast on Thursday. Klippsten alleged that Tether effectively controls Twenty One, a publicly traded U.S.-based bitcoin treasury company, and is using it to advance the company's interests in the U.S., stating it's 'kind of their U.S. entity for them to do U.S. things and, you know, line pockets where needed for political reasons.' Klippsten provided no evidence to support his claim, and Tether did not immediately respond to a request for comment. Tether has been working to expand its American footprint, launching USAT for the U.S. market and backing Twenty One's creation, which trades on the New York Stock Exchange under ticker XXI.
Mallers Steps Down as Twenty One CEO, Strike Exits Merger
Jack Mallers exited Twenty One this week as his company Strike also dropped out of a potential merger. Tether Investments, Twenty One's majority shareholder, proposed in April a two-stage merger that would have folded Strike into Twenty One, which would then merge with bitcoin miner Elektron Energy. Mallers posted to social media amid his departure: 'I've decided to step down as CEO of Twenty One. My life's work remains Bitcoin. My Bitcoin company is Strike. The work continues.' Mallers did not immediately respond to a request for comment.
Twenty One Launched Last Year Through SPAC Merger with $3.6 Billion Bitcoin
Last year, Twenty One was created through a SPAC merger with Cantor Equity Partners. It launched with $3.6 billion in bitcoin on its balance sheet, at the time making it the third-largest holder of bitcoin among publicly traded companies. Strike founder Jack Mallers was named CEO of Twenty One. USDT, the world's largest stablecoin, is primarily oriented toward markets outside the United States. Tether restricts most U.S. persons from directly using its platform, although USDT can still circulate through secondary markets.
Klippsten Characterizes Mallers' Role as Ceremonial
Klippsten characterized Mallers' position at the company as 'ceremonial,' saying the Strike founder's role was primarily to promote Twenty One's shares. 'He did his job, which was to shill the stock last April, which he did very aggressively,' added Klippsten, who also said he doesn't believe it was Mallers' decision to leave Twenty One. Although Klippsten said Tether had 'obfuscated it to some degree,' he argued that the company effectively controls Twenty One.
FAQ
What did Cory Klippsten allege about Tether and Twenty One Capital?
Swan Bitcoin CEO Cory Klippsten alleged during a Thursday podcast interview that Tether effectively controls Twenty One Capital, a publicly traded U.S.-based bitcoin treasury company, and is using it to advance Tether's interests in the U.S. for political reasons. Klippsten did not provide evidence to support his claim, and Tether did not immediately respond to a request for comment.
Why did Jack Mallers leave Twenty One Capital?
Jack Mallers stepped down as CEO of Twenty One Capital this week as his company Strike exited a potential merger. Tether Investments had proposed in April a two-stage merger that would have folded Strike into Twenty One, which would then merge with bitcoin miner Elektron Energy. Mallers stated his life's work remains Bitcoin and his Bitcoin company is Strike.
How was Twenty One Capital formed?
Twenty One Capital was created last year through a SPAC merger with Cantor Equity Partners. It launched with $3.6 billion in bitcoin on its balance sheet, making it the third-largest holder of bitcoin among publicly traded companies at the time. The company trades on the New York Stock Exchange under ticker XXI, and Tether Investments is its majority shareholder.
