{"id":247619,"date":"2022-07-09T03:20:41","date_gmt":"2022-07-09T02:20:41","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=247619"},"modified":"2022-07-09T02:32:32","modified_gmt":"2022-07-09T01:32:32","slug":"tether-reveals-how-it-returned-funds-to-celsius-following-liquidation","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/tether-reveals-how-it-returned-funds-to-celsius-following-liquidation\/","title":{"rendered":"Tether reveals how it returned funds to Celsius following liquidation"},"content":{"rendered":"

On June 15, Paolo Ardoino, CTO of Tether and Bitfinex, disclosed<\/a> that Tether had liquidated a loan given to Celsius “without loss.” Tether has confirmed the liquidation process and revealed that it “returned the remaining part [of the loan] to Celsius.”<\/p>\n

Tether also affirmed that it “reconfirmed in writing before the start of the liquidation event” the decision to liquidate the loan.<\/p>\n

Ardoino also added that the liquidation was “carried out in a way to minimize… any impact on the markets.” This may have been through OTC trades, adding to a hedged position, or possibly increasing the new of Bitcoins in its reserves.<\/p>\n

The fact that the loan was liquidated without loss is the result of the loan being overcollateralized by 130%<\/a>. This action means that Tether had 30% more Bitcoin held as collateral than the stablecoins it loaned to Celsius.<\/p>\n

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"This process was carried out in a way to minimize 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." https:\/\/t.co\/K1cBkaQWWI<\/a><\/p>\n

— Paolo Ardoino (@paoloardoino) July 8, 2022<\/a><\/p><\/blockquote>\n