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The loan is over 250 billion yen
On January 31, Tether, which issued the USDT stablecoin, strongly denied reports that it received loans from failed crypto asset (virtual currency) lender Celsius Network.
Paolo Ardoino, Chief Technology Officer (CTO), responded to the loan to Tether, which was named in Celsius’ bankruptcy filing, saying, “Tether has never borrowed from Celsius.”
Celsius filed for Chapter 11 bankruptcy last July. In August, the US government’s Federal Trusteeship Office asked the court to appoint an independent examiner on bankruptcy filings. Inspector Shoba Pillay, appointed at the end of September, released his final report on January 31 the following year.
Connection:The US Department of Justice asked independent investigators to investigate the bankrupt Celsius
In a 470-page bankruptcy report, as of December 2020, it was stated that loans from Celsius to Tether, the bankrupt Alameda Research, and Three Arrows Capital (3AC) far exceeded the credit limit. ing.
In the case of Tether, those loans doubled their limits, eventually ballooning to more than 250 billion yen ($2 billion). The inspector referred to Celsius’s internal documents, and is concerned that by the end of September 2021, “the Celsius capital will not be able to withstand the Tether default, so its massive exposure poses an existential risk to Celsius.” make it clear.
Mr Ardoino tweeted the following in response to the indications.
The document confuses “from” with “to”. Either typo or factual error.
A Financial Times reporter took to Twitter to offer a different interpretation of the statement in the bankruptcy report that “Celsius financed Tether,” and agreed with Andoino.
This exposure arose because Celsius had posted more collateral than the amount he had borrowed from Tether.
In a statement sent to crypto media outlet The Block, Andoino explained:
In the document, Celsius is mentioned as the counterparty that recorded the additional margin. This is what the borrower does to stay within the agreed risk limit.
Tether announced in July last year that it had liquidated its position at Celsius, which was facing financial difficulties. It was revealed that the loan to Celsius is denominated in Bitcoin and has a 130% guarantee rate.
Five days after the announcement, Celsius filed for bankruptcy.
Connection:Tether Liquidating Positions in Celsius
Former CEO Celsius sued
The New York State Attorney General on January 5 sued Celsius co-founder and former CEO Alex Mashinsky for defrauding cryptocurrency investors of billions of dollars.
Law enforcement officials will be held accountable for repeatedly making false and misleading statements about safety, covering up losses and failing to register as a securities and commodities trader.
Mashinsky announced his retirement as CEO on September 27 last year, but sources familiar with the matter said Mashinsky had taken about ¥1.3 billion ($10 million) from Celsius’ account before filing for bankruptcy. Reportedly taken out.
The bankruptcy filing accuses Celsius of misusing client funds over several years, including helping Mashinsky withdraw large sums of money.
Connection:New York Attorney General Sues Former CEO Celsius for Filed for Bankruptcy
The Tether CTO post denying borrowing from Celsius, denying the bankruptcy filing appeared first on Our Bitcoin News.
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