Home Cryptocurrency Bitfinex Pays Back $550 Million Loan To Tether

Bitfinex Pays Back $550 Million Loan To Tether

by Lisa Zheng
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BitFinex has emerged as one of the most prominent names in the cryptocurrency industry.

The exchange has now announced that it has paid back the entire loan amount to Tether.

BitFinex Pays Back $600 Million Loan To Tether.

BitFinex Exchange had taken around $600 million in loan from its sister firm Tether in 2018. The New York Attorney General Office exposed the deal in 2019 when the department alleged the exchange of using the funds from Tether to cover the loses it incurred. The NYAG said that BitFinex lost massive $800 Million funds to Crypto Corporate Corp. The Fraud probe was opened three years ago.

 The crypto exchange has now claimed that it has repaid the entire loan amount to the USDT(Tether) stable coin issuer. As per the firm it has made the entire payment with the last instalment issued in January. As per an announcement on BitFinex website, it has also closed the line of credit for Tether.

Tether is one of the most widely used and popular stable coin pegged on USD. It has a market cap of more than $28.31 billion which has reportedly grown massively in recent times. The official statement issued by BitFinex states that the firm has it repaid the balance of %550000000 of the loan amount to Tether. The amount was paid through a bank transfer in Fiat currency to Tether along with all the interest. 

Stuart Hoegner, the general counsel of BitFinex, told the Fortune that the firm is pleased with full repayment of the loan and the performance of the exchange has enabled the firm to pay the remaining balance earlier.

Tether and BitFinex have been in the centre of quite a few controversies lately. Tether has also faced a lawsuit alleging that it inflated the markets through releasing uncovered USDT tokens. BitFinex and Tether faced Plaintiff for allegedly manipulating Bitcoin price three years back. The BitFinex and Tether lawyers requested the court to cancel the lawsuit.

 BitFinex has also counter questioned NYAG for using the misleading factual presentation for treating the loan as IOU. 

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