Tether Accused of Secretly Controlling Publicly Traded Bitcoin Treasury Company

Swan Bitcoin CEO Cory Klippsten has accused Tether of secretly controlling Twenty One Capital, a publicly traded Bitcoin treasury company. According to Klippsten, Tether's majority shareholder, Tether Investments, exercises effective control over Twenty One through its ownership and financial backing.

Klippsten also alleged that Twenty One was being used to 'line pockets where needed for political reasons in the U.S.'

Twenty One trades on the New York Stock Exchange and was created last year through a special purpose acquisition company merger with Cantor Equity Partners. It began operations with about $3.6 billion worth of Bitcoin on its balance sheet, making it one of the largest publicly traded corporate holders of the cryptocurrency at launch.

Tether's relationship with Twenty One raises questions about governance and control in Bitcoin treasury companies. Klippsten's criticism places more scrutiny on Tether's role in the company.