Arthur Hayes cautioned that a 30% drop in Tether’s gold and Bitcoin holdings could pose a solvency threat, while Tether’s CEO refuted with strong equity figures.
Arthur Hayes warned that Tether could face solvency risks if its gold and Bitcoin reserves decline by 30%. In response, Tether CEO Paolo Ardoino rejected the claim, citing $70 billion in excess equity and $23 billion in retained earnings. Ardoino dismissed both Hayes’ remarks and similar concerns from S&P as misleading, emphasizing the company’s strong financial position.