• Mon. Dec 4th, 2023

Tether Loan Repayment Just Announced by Bitfinex amid Its Ongoing Legal Proceedings

Feb 7, 2021

According to the recent reports, Bitfinex has announced repaid an enormous balance of $550 million back to Tether. Bitfinex is a sister company to Tether (USDT), which is a centralized stablecoin. By making the $550 million payment to Tether, the firm has now closed the $750 million loan from a credit line of $900 million, first issued back in 2018.

The announcement has been made by Bitfinex while it faces a lawsuit for market manipulation in New York as well as a broader lawsuit that is being pursued by the Attorney General from New York.

The announcement around the payment of the remaining $550 million balance for the outstanding loan was made by one of the spokespeople of Bitfinex’s general counsel Stuart Hoegner.

The firm has announced that it paid the amount in full through fiat currencies and transferred the money over to Tether’s bank account. Bitfinex transferred the money to Tether’s bank account through bank wire transfer. Hoegner also confirmed that even the interest on the loan amount has been paid in full to Tether.

Although the amount has been paid in full by Bitfinex, it continues to face the lawsuit that was filed against the firm for the non-payment of the loan. It has been revealed that the parent company of both Bitfinex and Tether, iFinex is currently facing multiple law-suits.

The law-suits were filed against iFinex alleging the company issuing Tether that was unbacked. According to the law-suit, these unbacked Tethers were then used to artificially manipulate the market.

In addition to the lawsuits, iFinex is also facing a lot of scrutiny from the Attorney General of New York. It was during the last week when iFinex requested the court to push back the date for the trial. iFinex did this to buy some time so it could ready and produce the documents that have been demanded by the Attorney General’s Office.

However, this is not the first time iFinex has requested more time, but the second time that the company has requested to delay the trial.

Although iFinex is still finding it difficult to get out of the trouble just yet, both the sister companies continue to celebrate their progress. The chief technology officer at Tether and Bitinex was seen celebrating the company’s recent achievement through social media.

The Bitfinex and Tether CTO Paolo Ardoino were seen poking fun at the opposers of Tether. He was seen making fun of the Tether truthers who were always actively talking about how much of a systematic risk the stablecoin posed. They stated that the stablecoin was always an unstable product and would always pose a security risk to the entire cryptocurrency industry.

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