Hedge Funds Drawn to Crypto’s Next Big Short After FTX Reveals Cracks
- Fir Tree, Viceroy among firms that have bets against Tether
- Stablecoin’s FTX links draw scrutiny after exchange’s demise
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Before Sam Bankman-Fried was arrested in the Bahamas and charged with fraud this week, and before the demise of a $60 billion crypto ecosystem decimated digital asset lenders in May, there was the industry’s original bogeyman: Tether.
A handful of hedge funds are now turning their focus back to the $66 billion stablecoin, which they warn could be the next crypto catastrophe — one that would make the implosion of Bankman-Fried’s FTX exchange look small in comparison.