Tether liquidates the Celsius position without "losses" for the stablecoin transmitter
The stablecoin issuer has once again explained that its investment in Celsius has no impact on its USDT reserves.
New
Tether's Bitcoin (BTC)-denominated loan to Celsius Network has been fully liquidated with no loss, allaying concerns that the stablecoin issuer may have oversized exposure to the embattled crypto lender.
In a statement on Friday, Tether explained that its loan agreement with Celsius prevents any downside risk to its underlying business. Specifically, the BTC-denominated loan to Celsius was over-collateralized by 130%, and the original agreement allowed Tether to liquidate the collateral to cover the loan.
“This process was conducted in such a way as to minimize any impact on the markets as much as possible and in fact, once the loan was covered, Tether returned the remaining portion to Celsius in accordance with its agreement,” the statement read. "Celsius' position was liquidated with no loss to Tether."
"This process was conducted in such a way as to minimize any impact on the markets and in fact, once the loan was covered, Tether returned the remaining portion to Celsius in accordance with its agreement. Celsius's position was liquidated without any loss to Tether. https://t.co/K1cBkaQWWI
— Paolo Ardoino (@paoloardoino) July 8, 2022Celsius insolvency rumors began circulating last month after the crypto lender was forced to halt withdrawals due to “extreme market conditions.” The details of
The stablecoin issuer has once again explained that its investment in Celsius has no impact on its USDT reserves.
New
Tether's Bitcoin (BTC)-denominated loan to Celsius Network has been fully liquidated with no loss, allaying concerns that the stablecoin issuer may have oversized exposure to the embattled crypto lender.
In a statement on Friday, Tether explained that its loan agreement with Celsius prevents any downside risk to its underlying business. Specifically, the BTC-denominated loan to Celsius was over-collateralized by 130%, and the original agreement allowed Tether to liquidate the collateral to cover the loan.
“This process was conducted in such a way as to minimize any impact on the markets as much as possible and in fact, once the loan was covered, Tether returned the remaining portion to Celsius in accordance with its agreement,” the statement read. "Celsius' position was liquidated with no loss to Tether."
"This process was conducted in such a way as to minimize any impact on the markets and in fact, once the loan was covered, Tether returned the remaining portion to Celsius in accordance with its agreement. Celsius's position was liquidated without any loss to Tether. https://t.co/K1cBkaQWWI
— Paolo Ardoino (@paoloardoino) July 8, 2022Celsius insolvency rumors began circulating last month after the crypto lender was forced to halt withdrawals due to “extreme market conditions.” The details of
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