The stablecoin issuer Tether provided a $ 1 billion loan to the crypto-lending service Celsius Network, Bloomberg found out during its own investigation.
Celsius Network CEO Alex Mashinsky said his company pays Tether interest at a rate of 5-6%. Bloomberg, in turn, claims that in a similar way, Tether issued billions of dollars in loans to crypto companies, accepting Bitcoin as collateral.
In addition, according to the publication, Tether’s reserves contain multibillion-dollar debt obligations of large Chinese companies. Tether itself has previously denied claims that it holds bills of exchange from the Chinese developer Evergrande, caught in a debt crisis.
“Chinese investment and Tether’s bitcoin-backed loans have the potential to be significant,” Bloomberg writes. “If these loans become bad, even a small percentage of them, one Tether will cost less than $ 1, and investors will have an incentive to go into real money, which may start to run out quickly.”
Tether has already posted a rebuttal to the Bloomberg story on its website, saying it is based on snippets of old news and dubious sources.
“Here are the facts: All Tether tokens are fully secured, as we have demonstrated all the time. The company is leading the way in transparency by providing quarterly warranty certifications that ensure that all Tethers are fully covered. In addition, these attestations and extracts confirm that the vast majority of Tether commercial papers are rated A-2 or higher, ”the firm said.
Recall that the Celsius Network fell victim to hackers.
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