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Tether, the issuer of the USDT stablecoin, denied that it borrowed $2 billion from the bankrupt lending platform Celsius.
According to a nearly 700-page report filed in bankruptcy court on January 31, Celsius crash asset assessor Shoba Pillay pointed out that Tether had loans worth about $2 billion. from Celsius, as an early investor.
Soon after, Tether denied the above information. Tether CTO Paolo Ardoino told the media:
“This document contains a mistake or typographical error, possibly due to the workload and pressure to complete the application. In fact, in the document, Celsius referred to as the counterparty had to register for additional funds, an operation performed by the borrower in order to stay within the agreed risk parameters.”
In a key Celsius report released the same day, surveyor Shoba Pillay said Celsius had “borrowed Tether” against internal policy, citing a Celsius document outlining the risks. risk if Tether goes bankrupt in 2021.
Quote from Pillay’s report:
“Celsius loans to Tether are more than double the company’s credit limit. Tether exposure eventually grew to over $2 billion – a figure so large that by the end of September 2021 that risk was described before the Risk Committee as an existential risk. against Celsius because Celsius won’t survive if Tether defaults.’”
Earlier, at the time Celsius officially went bankrupt in July, Tether announced that it did not suffer many related consequences from this company. In addition, reports also show that Celsius has also exceeded credit limits for many other crypto companies, including the collapsed crypto investment firms Alameda Research and Three Arrows Capital.
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