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A report filed by Celsius drew attention to the world’s largest stablecoin. After studying it, an independent expert concluded that Tether borrowed money from Celsius, and the loans for the crypto company were twice the limits.
Bitfinex CTO Paolo Adroino commented on the situation with the “loan” and the work of a specialist:
Tether has never borrowed from Celsius. The document has “from” and “to” mixed up. This is either a typo or misinterpretation.
Thus, Adroino explained that the expert either made a typo or incorrectly described Tether transactions with Celsius, confusing the prepositions “from” and “to”.
Here is an excerpt from the analyst’s conclusion:
Tether’s debt eventually exceeded $2 billion. The figure is so large that at the end of September 2021, the Risk Committee deemed the loan “presenting an existential risk to Celsius”, as Celsius’ capital is insufficient to survive Tether’s default.
In fact, Tether was one of the first investors in Celsius, back in 2020, the USDT issuer invested $10 million in the company.
In 2021, the crypto lender borrowed $1 billion from Tether at an interest rate of 5% to 6%. This loan was almost completely liquidated after Celsius suspended withdrawals in June last year.
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