BitMEX Co-Founder Hayes Questions Tether's Over-Collateralization Claims on Illiquid Assets

BitMEX co-founder Arthur Hayes raised concerns about Tether's collateral structure on Dec. 1, responding to CEO Paolo Ardoino's disclosure that the company generates approximately $500 million monthly from U.S. Treasury holdings. Hayes stated on X that while Tether's profitability is strong, uncertainty remains regarding dividend policies and target over-collateralization ratios based on asset types and volatility. He noted that if Tether's liabilities are backed by U.S. Treasuries, risks are minimal; however, if the stablecoin issuer holds illiquid private investments as assets, any unexpected event could trigger market skepticism about its over-collateralization claims.