Tether CTO Paolo Ardoino recalled a situation in the past when hedge funds attempted to short USDT on secondary markets. Shorting is betting against a token with the expectation that its value will decrease. The intention of these hedge firms, according to Ardoino, was likely to create a scenario of a bank run where Tether faces bankruptcy and the USDT value plummets. But as per Ardoino, this strategy failed to have its desired impact. Instead, he claimed that it proved Tether’s resiliency during the crypto meltdown.
Remember when many hedge funds shorted $USDt on secondary markets, trying to cause a bank run? Their only result was proving Tether’s resiliency, while almost the rest of the crypto industry was melting down. Tether was able to redeem and pay 7B USD in 48 hours and more than 20B USD in less than one month. Shorting USDt proved to be an idea as brilliant as accepting FTT as collateral. Misery loves company.
Ardoino’s post referenced the controversial move by Digital Currency Group [DCG], whose founder Barry Silbert once reportedly tried to short USDT stablecoin and unsuccessfully pitched a merger of his Genesis Global with rival Gemini, per court filings. DCG is now battling against its former subsidiary and NYAG.
As earlier reported by TronWeekly, DCG alleged unfair play in the recent settlement case between its subsidiary Genesis and the New York Attorney General [NYAG]. According to the then court filing, DCG argued that Genesis had violated U.S. bankruptcy law “by taking value from the underclass and redistributing it to senior creditors under the garb of settlement.”
Tether CTO Mocks DCG
DCG and Silbert each filed separate motions to dismiss the fraud complaint filed against them by New York Attorney General [NYAG] Letitia James. The regulator also amended its original complaint to include new fraud allegations against DCG, its CEO, Barry Silbert, and Genesis. The alleged fraud at Gemini Trust and Barry Silbert’s Digital Currency Group was three times bigger than initially thought, the New York attorney general said in the revised civil complaint.
Amidst the legal entanglement, Tether CTO mocked DCG’s tactic to short USDT, which proved to be as unsuccessful as accepting FTT [FTX native token] as collateral. The largest stablecoin by market value recently expanded its support on the mobile-focused layer-1 platform, Celo. Committed to keeping USDT accessible and secure, the leading issuer has also built a robust blockchain recovery plan.