Tether CTO Denies Reports, Says That The Company Has Never Borrowed From Celsius

Key Points:

• Tether’s chief technical officer, Paolo Ardoino, declared on Twitter that the company “never borrowed from Celsius.”
• The tweet was in reaction to the bankruptcy examiner report for Celsius, which purportedly incorrectly claimed that Tether was one of the company’s debtors alongside companies like Three Arrows Capital, who borrowed $75 million from it.

In a tweet on January 31, Tether’s (USDT) chief technical officer, Paolo Ardoino, refuted the claim that the stablecoin issuer had borrowed money from Celsius.

The company behind USDT, the largest stablecoin in the world by market value, claims that it has never taken out a loan from the defunct cryptocurrency lender Celsius.

In a Twitter discussion on the Celsius examiner report, Ardoino reacted to claims that Tether, Three Arrows Capital, and Alameda Research would go over their credit limits with the insolvent lender.

According to the report, the stablecoin issuer constituted an existential threat to the lender’s financial stability and had over $2 billion in exposure to Celsius. It also stated that Celsius’ capital wouldn’t be enough to prevent a Tether default.

Ardoino, who denied having any exposure to the problematic Celsius, said that examiner Shoba Pillay misread the examiner report, misreading “Celsius loans to Tether” as “Celsius loans from Tether.”

In a Twitter conversation begun by Financial Times reporter Kadhim Shubber, the company’s chief technical officer commented:

“Either is a typo or a mischaracterization.”

Shubber said that there might be some misinterpretation in the examiner report:

The most recent examiner report states that the loan amount was significantly higher than $1 billion. Examiner Shubber reported that Celsius has borrowed $1.823 billion of the stablecoin USDT from Tether and put up $2.612 billion of its assets under management as security, accounting for 17% of all of Celsius’ assets.

The USDT issuer said in a statement from July 2022 that it liquidated debt to the cryptocurrency lending company without suffering any damages. The stablecoin issuer omitted to include the loan’s monetary amount.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Harold

Coincu News