Swan CEO claims Twenty One serves Tether’s US political interests, calls Mallers' role 'ceremonial'

Swan Bitcoin CEO Cory Klippsten sharply criticized stablecoin giant Tether and Jack Mallers, who recently stepped down as CEO of Twenty One Capital.

Although Klippsten said Tether had "obfuscated it to some degree," he argued that the company effectively controls Twenty One, a publicly traded U.S.-based bitcoin treasury company.

Klippsten also alleged that Twenty One is being used as a vehicle to advance Tether’s interests in the U.S. "It's kind of their U.S. entity for them to do U.S. things and, you know, line pockets where needed for political reasons," he said during an interview on Thursday.

The Swan Bitcoin CEO didn't offer any evidence to support his claim about Tether using Twenty One for political reasons. Tether didn't immediately respond to a request for comment.

USDT, the world’s largest stablecoin, is primarily oriented toward markets outside the United States. Tether restricts most U.S. persons from directly using its platform, although USDT can still circulate through secondary markets. The company has nevertheless been working to expand its American footprint.

Besides launching USAT, a stablecoin designed specifically for the U.S. market, Tether backed the creation of Twenty One, which trades on the New York Stock Exchange under the ticker XXI.

Last year, Twenty One was created through a SPAC merger with Cantor Equity Partners. It launched with $3.6 billion in bitcoin on its balance sheet, at the time making it the third-largest holder of bitcoin among publicly traded companies. Strike founder Jack Mallers was named CEO of Twenty One.

Mallers exited Twenty One this week as his company Strike also dropped out of a potential merger. Tether Investments, Twenty One's majority shareholder, proposed in April a two-stage merger that would have folded Strike into Twenty One, which would then merge with bitcoin miner Elektron Energy.

"I've decided to step down as CEO of Twenty One," Mallers posted to social media amid his departure. "My life's work remains Bitcoin. My Bitcoin company is Strike. The work continues."

Klippsten characterized Mallers' position at the company as "ceremonial," saying the Strike founder's role was primarily to promote Twenty One's shares.

"He did his job, which was to shill the stock last April, which he did very aggressively," added Klippsten, who also said he doesn't believe it was Mallers' decision to leave Twenty One.

Mallers didn't immediately respond to a request for comment.