Celsius allegedly borrowed $1 billion from Tether with Bitcoin in 2021, with founder Alex Mashinsky stating that Celsius was paying an interest rate between 5% and 6%. In June 2022, Tether said it liquidated the $900 loan, which came about a month after Celsius halted withdrawals.

The amount of the loan was much bigger than $1 billion, though, according to the latest examiner report. “Celsius had borrowed $1.823 billion of the stablecoin USDT from Tether, posting as collateral $2.612 billion of its assets under management,” examiner Shubber wrote, adding that the collateral amounted to 17% of all Celsius’ assets.

Apart from providing massive loans to Celsius, Tether is known as an early investor in the bankrupt firm. In 2020, Celsius secured a $10 million equity raise from Tether, with CEO Mashinsky highlighting an important endorsement by the firm.