On Friday, Tether disclosed Celsius' loan liquidation process and <a href="https://tether.to/en/tether-discloses-celsius-loan-liquidation-process/" target="_blank" rel="nofollow noopener">revealed</a> that it had repaid a debt to the troubled cryptocurrency lender without suffering any damages. The <a href="https://www.cryptoknowmics.com/news/tether-condemns-false-rumors-about-its-exposure/">statement</a> from last month claiming it had no exposure to Celsius "aside from a small investment made out of Tether shares in the firm" was followed by today's news. According to Tether, it provided Celsius with a loan in bitcoin that was almost 130 percent overcollateralized.

According to the terms of the contract with the cryptocurrency platform, the Celsius debt has subsequently been liquidated, according to the tether stablecoin's (USDT) issuer. Tether claims that this liquidation was carried out in a fashion that did not affect the market. Following its arrangement, Tether refunded the remaining portion to Celsius. The notification said that the Celsius position had been liquidated with no damage to Tether.
<h2>Tether's Investment in Celsius</h2>
Since <a href="https://www.cryptoknowmics.com/news/crypto-lender-celsius-halts-all-withdrawals-swaps-and-transfers/">suspending all withdrawals</a> on June 12 because of "extreme market conditions," Celsius has been fighting for its existence. Since then, client funds have been stuck. In May, Celsius reported having 1.7 million clients and managing about $12 billion in assets. Additionally, Tether's investment in Celsius was a "small part of its shareholder's equity" and did not affect the company's stability or reserves.

Concerns regarding the condition of its funds have been brought up by the company's exposure to subprime corporate debt in the form of Chinese commercial paper and loans to troubled cryptocurrency lenders like Celsius. According to the company's most recent transparency report, its reserve of US Treasury bills increased while its holdings of commercial paper fell by 17 percent. The company's stablecoin assets, of which USDT is the most well-known, are backed by this reserve.

Tether Discloses Celsius' Loan Liquidation Process

Tether disclosed Celsius' loan liquidation process and revealed that it had repaid a debt to troubled cryptocurrency lender without suffering any damages.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Tether Discloses Celsius' Loan Liquidation Process

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