The stablecoin Tether‘s creator on Friday provided new information regarding its loan to crypto lender Celsius, claiming that the margin calls and subsequent liquidation caused “no losses.” That’s because, in the company’s opinion, the Bitcoin loan was 130 percent overcollateralized.
After Tether’s Celsius loan was liquidated on June 15, the firm initially claimed it had “no exposure to Celsius” other than its stock stake in the lender for digital assets. When the loan was obtained and how much of the collateral was lost during the recent decline in bitcoin’s value were not disclosed by the company. According to Tether, the loan was fully repaid, and USDT even gave some of the security back to Celsius.
Tether seems to criticize Celsius and Voyager’s lending methods. After clients’ accounts were frozen, the firm claimed that Voyager and Celsius were both discovered to have provided loans with insufficient collateral.
“While the media, critics and community were wrongly fixated on Tether, other lenders including notable names in the space were blatantly providing lending facilities with nearly zero collateral,” the firm stated.
Tether reaffirmed that it had a “minimal” investment in Celsius, which it maintains has no impact on the stability or reserves of USDT.
Tether stated that “Critics who make claims of Tether’s inconsistencies clearly have no understanding of how lending, borrowing, and management work,” A Tether representative declined to provide any information on the loan’s particular timeline, including when it started.
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