Former Citigroup crypto analyst Joseph challenged Arthur Hayes’ analysis of Tether’s financial stability in a detailed X post, arguing that the former CFTC official overlooked crucial structural aspects. While Hayes proposed a 30% decline in gold and Bitcoin positions would lead to Tether’s insolvency, Joseph highlighted three key errors in his assessment. He pointed out that Tether maintains a separate undisclosed equity balance sheet beyond reported reserves, potentially holding additional Bitcoin and driving profit generation. This structure enables the company to generate substantial profits from its treasury holdings of $120 billion in US Treasury securities, generating an annual $10 billion profit. The analysis suggests Tether’s equity value could range between $50-100 billion, significantly higher than Hayes’ estimation.