A proposed merger of three crypto firms has been scrapped, with one of their leaders stepping down and another consolidating power across the Tether-backed franchise. The deal's collapse marks a significant shift in the stablecoin issuer's strategy to expand its ecosystem through acquisitions.

Jack Mallers, CEO of payments firm Strike, has stepped down from his role in the Tether-backed venture. His departure follows the termination of the three-way combination that would have united Strike with two other crypto entities under Tether's umbrella.

The consolidation of control now rests with the remaining leadership, strengthening Tether's direct influence over its franchise operations. This development comes amid increased regulatory scrutiny of stablecoin issuers and their corporate structures.

Industry observers note the failed merger reflects broader challenges in crypto consolidation efforts, where regulatory uncertainty and operational complexities have derailed several high-profile combinations in recent months.