Tether has announced that despite its investments in Celsius, USDT reserves will not be harmed by the company's sudden downfall.

Celsius's native token is going down at present but the Stablecoin provider Tether is confident that it would no way impact the USDT reserves. Lending platform Celsius Networks made a major announcement recently that it has paused all withdrawals on the platform, a move that it calls is in the interest of the community. Following the announcement, CEL, the native token of the Celsius Network is facing intense selling pressure crashing 45%, dropping to $0.20.

Tether issued a statement on Monday regarding the major cryptocurrency lending platform Celsius halting withdrawals due to its rumored liquidity crisis. According to the statement, Tether's lending activity with Celsius has "always been overcollateralized" as with any other borrower and "has no impact" on the company's reserves. The announcement also described the ongoing issues with Celsius as an "unfortunate result of market volatility and extreme market conditions."

Tether is also known as an early investor in Celsius, contributing $10 million in equity investment to the lending platform in 2020. The latest statement from Tether stressed that the company's investments in Celsius have nothing to do with Tether: "While Tether's investment portfolio does include an investment in the company, representing a minimal part of our shareholder's equity, there is no correlation between this investment and our own reserves or stability." Celsius officially halted all withdrawals on its platform on Monday, citing "extreme market conditions" as its native CEL token lost about 50% of its value on Sunday. The Bitcoin community has further subsequently expressed skepticism over events at Celsius, with some industry observers suggesting that the Celsius network could "collapse and take a bunch of customer money with it."