Tether, whose $66bn stablecoin known as USDT plays a key role in crypto markets, recouped an $840mn loan to Celsius ahead of the bankruptcy by selling bitcoin Celsius pledged as collateral.
The question now is whether Celsius could reclaim the value Tether received in the loan liquidation. The answer would clarify an uncertain area of bankruptcy law and in the worst case for Tether hit the reserves that underpin USDT.
“Can Celsius recover?.?.?.?loan liquidations completed in the 90 days before filing?” Celsius’s law firm Kirkland & Ellis said in a presentation to the New York bankruptcy court last week. The question was among the “legal issues critical to the outcome of the case”.
‘Enforcement 40’ for 2020
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