Tether is the subject of discussion: 1 billion dollars worth loan to Celcius

The reserves of Tether, which was fined $18 million from the New York Attorney General’s Office together with the cryptocurrency exchange Bitfinex in the past years, and which was banned from trading in the region, again became the subject of discussion. It turned out that the USDT issuer company gave billions of dollars of assets to companies as loans.

The discussions about the Tether company, which is the issuer of USDT, do not end. An investigation into the company revealed that Tether gave billions of dollars to many companies as loans that it should keep in reserves.

$1 billion worth loan to Celcius

Alex Mashinsky, CEO of Celsius Network, one of the companies that Tether has given a loan of $1 billion, and which is a crypto lending platform, said in a statement within the scope of the investigation that they paid 5% to 6% interest to Tether. The investigation found that Tether also lent billions of dollars to other companies. These companies were using Bitcoin as collateral. Among these companies are those based in China. As it is known, Tether also led the investment tour of Celcius, which collected $30 million in June 2020.

Celcius was also on the radar of regulatory agencies in the US in regions such as Texas, New Jersey, Kentucky, and Alabama. Institutions had requested the company to stop some crypto interest products from violating the law.

As it is known, fixed coins have been a serious topic of discussion in jurisdictions such as the USA and the EU recently. 

In the past days, it was announced that an investigation was opened by the US Securities and Exchange Commission (SEC) against the company Circle, which is a USDC issuer. In the statement, it was stated that the investigation was opened in July.

SEE ALSO: What Is Crypto Arbitrage?

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