Celsius loan liquidation caused ‘no loss to Tether’
- Tether concedes its portfolio still includes a ‘minimal’ investment in Celsius
- The company did not say when the loan was taken – or what part of the collateral was lost during bitcoin’s recent drop in value.
The company behind stablecoin Tether on Friday unveiled new details about his loan to beleaguered crypto lender Celsius – claiming that margin calls and subsequent liquidation resulted in “no loss”.
Indeed, according to the company, the bitcoin loan was over-collateralized by 130%.
Attach first said the liquidation of its Celsius loan on June 15 left the company with “no exposure to Celsius” outside of its equity investment in the digital asset lender.
The company didn’t say when the loan was taken – and how much of the collateral was lost during bitcoin’s recent drop in value. The loan was repaid in full, by Tether, and USDT even returned part of the collateral to Celsius.
Tether appeared to be interested in the lending practices of Celsius and Voyager.
“While the media, critics and community were wrongfully obsessed with Tether, other lenders, including notable names in the space, were blatantly providing lending facilities with almost no collateral,” the company wrote. society. Voyager and Celsius were found to have made under-secured loans after freezing customer accounts.
Tether reaffirmed that it has a “minimal” investment in Celsius, which it says has no bearing on USDT reserves or stability.
“Critics claiming Tether’s inconsistencies clearly don’t understand how lending, borrowing, and management work,” the company said.
A Tether spokesperson declined to comment on the specific timing of the loan, including its original date.
Get the best crypto news and insights of the day delivered to your inbox each evening. Subscribe to Blockworks’ free newsletter now.