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Stablecoin issuer Tether (USDT) has stated that it has liquidated the assets used as collateral by the troubled cryptocurrency lending platform Celsius Network (CEL).
New tether note publication The portfolio should include an investment in Celsius that “represents a small portion of shareholders’ equity.”
Tether emphasizes that investments in Celsius have no correlation with USDT reserves or stability.
The company also said it had liquidated the collateral for the loan to Celsius.
“The tether loan acquired by Celsius is a BTC (130% +) denominated over-collateral loan, and the decision to liquidate the collateral to cover the loan is part of the initial terms of the agreement between the two entities. It was reconfirmed. In writing before the start of the clearing event. This process was carried out in a way that minimized the impact on the market. In fact, once the loan was covered, Tether returned the rest to Celsius according to the agreement. The position in Celsius was liquidated without causing any loss to Tether. “
On June 13, Celsius announced that it would suspend withdrawals and transfers due to extreme fluctuations in the crypto market.
The company said it has made a decision “to stabilize liquidity and operations while taking steps to protect and protect assets.”
Since then, CEL has crashed more than 99% from a record high to a low of $ 0.15. Since then, it has fallen by more than 90% from its previous high, but has recovered to $ 0.76 at the time of writing.
Tether during the first CEL crash last month fought Rumors that the company’s Celsius investment will affect USDT reserves or stability.
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Featured images: Shutterstock / FOTOKITA / WhiteBarbie
