Bitfinex has Repaid the $850 Million Loan Owed to Tether in ‘Full’ and ‘Early’

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.”

Read Original/a>
Author: AnTy

Bitfinex Makes Good on Tether Loan By Repaying $100 Million of $700 Million Loan from USDT

Bitcoin-Pump-Leads-to-20-Million-USDT-Transfer-from-Bitfinex-to-Tether-According-to-Whale-Alert

Bitfinex, a prominent crypto exchange, has recently repaid $100 million USD from the $700 million loan that the company had with its sister company Tether, a stablecoin operator.

According to the announcement, the payment was made via a wire transfer to the banking account of the other company. The payment was expected to be made later this year, but the company decided to go ahead and do it this week. Also, all interest accrued under the loan was also paid up until June 30.

In case you are not familiar with this very divisive loan, Bitfinex was facing a hard time in the first half of 2019 when one of its payment processors did not pay it. Crypto Capital, the payment processor, had its funds seized by the authorities because it was linked to illegal activities.

In order to continue its activities, the company decided to loan the money from Tether, which shares the same owners of Bitfinex. The trouble started when the New York Attorney General complained that the $700 million USD that was loaned to pay for the $850 million hole caused by Crypto Capital not paying.

The funds that were the basis of the stable price of Tether (USDT), should not be used for loans, according to the New York Attorney General, and this caused controversy and the start of a legal battle.

While the two companies share owners, they are distinct entities and Tether is supposed to be backed 1-for-1 with the USD. By lending the money, some of the value of the token was actually backed by debt, not fiat. Curiously, this did not affect the price of the tokens at all. They still continued to trade at normal prices even after the controversy.

Right now, the battle between the New York Attorney Office and IFinex, the holding company that manages both Bitfinex and Tether, continues. The company is being accused of covering up the losses, but it has filed a motion to dismiss the accusation, affirming that the attorney office is out of its jurisdiction and lacks the data to continue its claims.

This month, the legal battle will reach its next chapter. The NYAG office has until July 8 to file its opposition with the court and IFinex has until July 22. At the end of the month, on July 29, both companies will face each other in court again.

Read Original/a>
Author: Gabriel Machado