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According to its director of technology, the company behind tether (), the biggest stablecoin in the world by market capitalization, has never received a loan from the cryptocurrency lender in bankruptcy celsius.
Paolo ardoino, CTO at tether and bitfinex crypto exchange, took to twitter on jan. 31 to announce that Tether has “never borrowed from Celsius.”
The tweet came in response to the Celsius bankruptcy examiner report, which allegedly mistakenly implied that Tether was among Celsius’ borrowers alongside firms like Three Arrows Capital, which borrowed $75 million from the firm.
Released on Jan. 31, the examiner report mentioned on page 183 that “Celsius’s loans to Tether were twice its credit limit.”
The review report, released on January 31, stated on page 183, "Celsius's loans to Tether were twice its credit limit".
The report points out that "Tether's exposure ended up being over $2 billion," which became a problem at the end of September 2021 when it was outlined to the risk committee as "life-threatening" at Celsius.
Refuse any disturbance of Celsius exposure, Ardoino suggested that reviewer Shoba Pillay confuse the prepositions in the report of the reviewer, in fact, it means "Tether's Celsius loans" rather than "Tether's Celsius loans".
Shubber also mentioned that the examiner report is associated with some level of miscomprehension, stating:
Shubber also mentioned that there is some level of misunderstanding in the examiner's report, stating:
As previously reported, Celsius allegedly borrowed $1 billion from Tether with Bitcoin () in 2021. Shubber also noted that there is some level of misunderstanding with the examiner's report, "The report from the reviewer described above that Celsius has "loans" to take out, But I think the exposure is due to the fact that Celsius posted more security than he borrowed from Tether.", celsius would have borrowed 1 billion dollars of cable with Bitcoin () by 2021. In June 2022, Tether said it liquidated the $900 million loan, which came about a month after Celsius halted withdrawals.
Related: Celsius publishes list of users eligible to withdraw majority of assets
In June 2022, Tether reported that it had liquidated the $900 million loan, about one month after Celsius withdrawals ceased. The loan amount was much more than $1 trillion.
'Celsius borrowed USD 1.823 billion from the Tether's stable, by pledging $2.612 billion of its AUM assets," the reviewer wrote, and the guarantee was 17% of all assets in degrees Celsius. In 2020, Celsius secured a $10 million equity raise from Tether, with Mashinsky highlighting it as an important endorsement by the firm.
