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Recent Court Documents Expose DCG – Tether CEO Mocks Digital Currency Group
Learn how Tether CEO Paolo Ardoino takes a dig at Digital Currency Group (DCG) and emphasizes Tether's resilience. Read more about the connection between DCG and the rumor that Tether is unstable, as well as Tether's ability to repay billions of dollars in a short period of time. Plus, learn why shorting USDT wasn't a "brilliant idea."
Recent Court Documents Expose DCG – Tether CEO Mocks Digital Currency Group
Paolo Ardoino, CEO of Tether, the issuer of USDT, the world's largest stablecoin by market capitalization, has taken a swipe at Digital Currency Group (DCG), which is currently facing a lawsuit from the New York Attorney General (NYAG). In a March 11 tweet, Ardoino mocked DCG in light of newly released court documents. According to the documents, the CEO is said to have shorted “400 million” USDT. DCG and Barry Silbert feared that Tether would “explode” and decided to hedge risks and protect the company.
Tether CEO attacks DCG
According to Ardoino, the events of mid-2022 highlighted Tether’s resilience, especially when “almost the entire rest of the crypto industry collapsed.” The CEO boasted that despite a flood of repayment requests, the company was able to trigger and pay out $7 billion in two days and another $20 billion in less than a month. Additionally, he claims that every token in circulation is fully backed by cash and other cash reserves, including treasury bills. Accordingly, any of the over 100 billion USDT can be redeemed for cash at any time.
Shorting USDT is not a “brilliant idea”
Knowing what happened at DCG and considering that the company is now in trouble and is being sued by the New York regulator for fraud and other allegations, the CEO added that shorting USDT was as brilliant an idea as accepting FTT as collateral. FTX, an insolvent crypto exchange founded by Sam Bankman-Fried, issued FTT. Genesis Global, a subsidiary of DCG, was exposed to FTX. FTX’s collapse was partly attributed to its reliance on FTT as collateral.
Table: Information about Tether and DCG
| Tether | Digital Currency Group (DCG) | |
|---|---|---|
| CEO | Paolo Ardoino | – |
| Stablecoin market cap | Largest stablecoin by market capitalization | – |
| Number of USDT tokens in circulation | Over 100 billion | – |
| Claiming full coverage of tokens | Yes | – |
| Recovered $7 billion in two days | Yes | – |
| Recovered $20 billion in less than a month | Yes | – |
| Involved in a lawsuit filed by the New York Attorney General | No | Yes |
| Accusation of short selling USDT tokens | – | Yes, “400 million” |
Note: Information on DCG is limited as detailed information was not provided in the press release.
Conclusion
Recent comments from Tether CEO Paolo Ardoino illustrate the company's resilience and emphasize the full backing of each USDT token by cash and cash reserves. His comments came in response to court documents claiming he had shorted “400 million” USDT. Ardoino has also called shorting USDT a bad idea, pointing to the example of FTX and the collapse of FTT as a security. It remains to be seen how the situation between Tether and DCG will develop and what impact this could have on the cryptocurrency market.