Tether liquidated the Celsius loan without any losses
The issuer of the popular stablecoin Tether reports that the loan taken by the troubled crypto firm Celsius has been liquidated, and Tether has not suffered any losses. Tether describes its investment in Celsius as a "minimal portion of equity."
Today's announcement follows a statement last month that the company has nothing to do with Celsius, "other than a small investment made from Tether's capital in the company." Tether stated that it had issued a bitcoin loan to Celsius, which was secured in the amount of about 130%.
The issuer of the Tether (USDT) stable coin stated that the Celsius loan has since been liquidated based on the terms of the agreement with the cryptoplatform. According to Tether, this liquidation was carried out in such a way as to have minimal impact on the market.
"Tether returned the remaining part of Celsius in accordance with the agreement. The position of Celsius was liquidated without losses for Tether," the message says.
Celsius has been trying to stay afloat since it froze all withdrawals on June 12, citing "extreme market conditions." Since then, customer funds have remained inaccessible to them. In May, Celsius announced 1.7 million customers and assets under management worth about $12 billion.
Tether also stated that its investment in Celsius represents a "minimal portion of equity" and has not affected its reserves or stability. The company has faced concerns about the state of its reserves caused by the presence of bad corporate debts in the form of Chinese commercial securities and loans to crypto lenders such as Celsius.
The latest report on the state of reserves showed a decrease in stocks of commercial securities by 17%, as well as an increase in the share of US Treasury bills in the collateral structure. These reserves are used to support the binding of Tether's stablecoins, among which USDT is the most popular.
https://coin-signal.com/cryptonews/tether-liquidated-the-celsius-loan-without-any-losses-2/
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