Swan Bitcoin CEO says Tether effectively controls Twenty One Capital

Cory Klippsten said Jack Mallers’ role at the NYSE-listed bitcoin treasury company was largely promotional, while offering no evidence for his claim that Tether uses Twenty One for political aims in the U.S.

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32d ago

Fact Check

The claim faithfully reports Klippsten's statements as documented by the primary reporting source. The Block article and The Block's own X post confirm Klippsten alleged Tether effectively controls Twenty One and uses it for U.S. political purposes without offering evidence, and that he characterized Mallers' role as ceremonial/promotional. Supporting context (Mallers stepping down, Tether as majority shareholder) is corroborated by a second The Block article. The claim is a report of what Klippsten said, not an endorsement of the underlying allegation, and it accurately notes the lack of evidence — matching the sources.

Summary

Swan Bitcoin CEO Cory Klippsten accused Tether of effectively controlling Twenty One, the publicly traded U.S.-based bitcoin treasury company backed by Tether Investments, and said the firm is being used to advance Tether’s interests in the United States. Speaking on The Starting Block podcast on Thursday, Klippsten said Tether had "obfuscated it to some degree" but argued Twenty One functions as a U.S. vehicle for the stablecoin issuer. He did not provide evidence for his allegation that the company is used for political reasons. The comments came days after Jack Mallers stepped down as CEO of Twenty One. Klippsten described Mallers’ position as "ceremonial" and said the Strike founder’s main job had been to promote the company’s shares. He added that he did not believe Mallers’ departure was Mallers’ own decision. Mallers said in a social media post, "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." Twenty One was created last year through a SPAC merger (listing via a shell company) with Cantor Equity Partners and launched with $3.6 billion in bitcoin on its balance sheet, making it at the time the third-largest holder of bitcoin among publicly traded companies. The company trades on the New York Stock Exchange under the ticker XXI. Tether, whose USDT stablecoin is the world’s largest, has limited direct platform access for most U.S. persons but has been expanding its U.S. presence, including by launching USAT for the domestic market and backing Twenty One.

Terms & Concepts

stablecoin: Crypto token designed to track a reference asset
bitcoin treasury company: Public company that holds bitcoin on its balance sheet
SPAC merger: Public listing through a shell company merger