{"id":13193,"date":"2022-07-09T17:17:54","date_gmt":"2022-07-09T17:17:54","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tether-liquidates-celsius-bitcoin-loan-position-has-been-liquidated-with-no-losses-to-the-company-bitcoin-news\/"},"modified":"2022-07-09T17:17:54","modified_gmt":"2022-07-09T17:17:54","slug":"tether-liquidates-celsius-bitcoin-loan-position-has-been-liquidated-with-no-losses-to-the-company-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tether-liquidates-celsius-bitcoin-loan-position-has-been-liquidated-with-no-losses-to-the-company-bitcoin-news\/","title":{"rendered":"Tether Liquidates Celsius Bitcoin Loan \u2014 ‘Position Has Been Liquidated With No Losses’ to the Company \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On July 8, 2022, the company behind the largest stablecoin in the world, Tether, revealed that the firm liquidated a loan made to the crypto lender Celsius, and the liquidation caused \u201cno losses to Tether.\u201d According to the stablecoin issuer, the bitcoin loan to Celsius was \u201covercollateralized\u201d by roughly \u201c130%+.\u201d<\/strong><\/p>\n

Tether Liquidates Bitcoin Loan Taken out by Celsius \u2014 Stablecoin Issuer Stresses It Will \u2018Never Put the Integrity of Its Reserves at Risk\u2019<\/h2>\n

The company Tether<\/a> has informed the public<\/a> that the firm \u201chas never and will never put the integrity of its reserves at risk.\u201d Tether noted on Friday that it did have an investment in Celsius<\/a>, the embattled crypto lender, but the investment was \u201ca minimal part of its shareholder\u2019s equity.\u201d<\/p>\n

A loan denominated in bitcoin (BTC<\/a>) was taken out by Celsius<\/a> and Tether<\/a> said the loan was overcollateralized by more than 130%. \u201cThe decision to liquidate the collateral to cover the loan was a part of the original terms of the agreement between the two entities and reconfirmed in writing before the start of the liquidation event,\u201d Tether detailed. The stablecoin issuer added:<\/p>\n

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This process was carried out in a way to minimise as much as possible any impact on the markets and in fact, once the loan was covered, Tether returned the remaining part to Celsius as per its agreement. Celsius position has been liquidated with no losses to Tether.<\/p>\n<\/blockquote>\n

Stablecoin Issuer Says Tether Critics \u2018Have No Understanding of How Lending, Borrowing, and Risk Management Work\u2019<\/h2>\n

The company\u2019s blog post added that Tether leverages risk management processes and the firm states that \u201cwhile 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.\u201d Those kinds of lending practices go against the ethos of Tether and the company\u2019s \u201cstrict regulatory practice.\u201d<\/p>\n

Meanwhile, during the last few weeks, a great number of crypto businesses have shown that they were exposed to firms like Celsius and the crypto firm Three Arrows Capital (3AC). The founder of Keyfi is suing Celsius<\/a>, as the NFT whale also known as \u201c0xb1,\u201d has accused the company of being a \u201cPonzi scheme,\u201d and allegedly allowed its entire portfolio to have \u201cnaked exposure to the market.\u201d<\/p>\n

It was further reported this week that Blockchain.com lost $270 million<\/a> from 3AC exposure and crypto companies like Voyager Digital<\/a>, Blockfi<\/a>, Babel Finance, and Vauld<\/a> were all affected by 3AC\u2019s financial issues.<\/p>\n

Today, stablecoins have an aggregate market capitalization of around $154 billion, and $65.9 billion worth of USDT<\/a> is managed by Tether. During the past 24 hours, there\u2019s been $100 billion in global trade volume across crypto markets, and USDT<\/a> commands $66.6 billion of that volume.<\/p>\n

Tether\u2019s blog post about the Celsius bitcoin loan highlights how the company has been vilified by critics over rumors and speculation. \u201cCritics who make claims of Tether\u2019s inconsistencies clearly have no understanding of how lending, borrowing, and risk management work,\u201d Tether\u2019s blog post on Friday concludes.<\/p>\n

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agreement<\/a>, Babel Finance<\/a>, Bitcoin loan<\/a>, Blockchain.com<\/a>, Blockfi<\/a>, borrowing<\/a>, Celsius<\/a>, Celsius Loan<\/a>, Keyfi founder<\/a>, lending<\/a>, liquidated<\/a>, loan agreement<\/a>, risk management<\/a>, Stablecoin<\/a>, Stablecoin Economy<\/a>, Stablecoins<\/a>, Tether<\/a>, Tether (USDT)<\/a>, Tether critics<\/a>, USDT<\/a>, USDT stablecoin<\/a>, Vauld<\/a>, Voyager Digital<\/a><\/div>\n<\/div>\n

What do you think about Tether liquidating the bitcoin loan taken out by Celsius? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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