Bitfinex has Repaid the $850 Million Loan Owed to Tether in ‘Full’ and ‘Early’
Cryptocurrency exchange Bitfinex has repaid the remaining balance of $550 million of the outstanding loan to Tether, which was the center of allegations of fraud made by the New York Attorney General (NYAG).
The payment has been made in fiat currency by Bitfinex, which was wired to Tether’s bank account in January.
The loan and all interest due on the loan has now been repaid, “early and in full” shared the exchange this week, adding “the line of credit has been canceled.” The stablecoin’s website also states,
“Tether acknowledges that in January, it was repaid the remaining balance of $550,000,000 of the outstanding revolving loan facility owed by Bitfinex.”
Tether, the issuer of $29.13 billion market cap stablecoin USDT, is the sister company of crypto exchange Bitfinex, and both are run by the same officials. USDT’s market cap was $21 billion at the beginning of 2021, which has surged from just $4.28 billion on April 1st, 2020.
Reportedly, it was Bitfinex’s performance that made it possible for the exchange to repay the balance early.
Cryptocurrency exchanges have been benefiting from high volatility and transaction volume ever since last year. During this period, the price of Bitcoin has skyrocketed to a new ATH of $42,000, had a 30% pullback, and is now back on its way to new highs. Meanwhile, tons of altcoins and DeFi tokens are also recording a meteoric rise.
Back in 2019, New York Attorney General Letitia James claimed that Bitfinex hid the loss of over $850 million of its clients and corporate funds. Paolo Ardoino, Bitfinex’s chief technology officer told Bloomberg,
“While the repayment of the loan, all interest due, and cancellation of the facility does not directly impact the New York Attorney General’s special proceeding, the credit facility was clearly of interest to the Attorney General’s office.”
“We look forward to continuing our productive and constructive discussions with the Attorney General’s office.”