Posted By Tony Posted On

Bitfinex announced that it has repaid the Tether loan balance, but legal proceedings continue

In a brief statement, Bitfinex, the sister company of the centralized stable coin Tether, announced that it has repaid Tether’s outstanding loan balance of US$550 million. This move fully settled the US$750 million loan out of the US$900 million credit line first announced in 2018. This loan plunged it into New York market manipulation lawsuits and other legal proceedings, as well as its ongoing legal dispute with the New York Attorney General Core.

Bitfinex General Counsel Stuart Hoegner wrote: “Bitfinex is pleased to announce that in January this year, it repaid an outstanding revolving loan of US$550 million to Tether. Bitfinex made the payment by wire transfer to the fiat currency of the Tether bank account. All the loan interest due has been paid. Now, the loan has been repaid in full in advance and the credit line has been cancelled.”

While repaying the loan, legal proceedings regarding the loan are continuing. As a result of this loan, iFinex Inc., the parent company of Tether and Bitfinex, faced multiple class-action lawsuits, accused of issuing unsecured Tether and then using it to manipulate the market.

iFinex is also facing review by the New York Attorney General. Last month, iFinex requested a postponement of the trial date so that the company can provide the documents requested by the Attorney General’s Office. This is the second time the company has requested a postponement of the trial.

Although the legal troubles of iFinex will not disappear anytime soon, Paolo Ardoino, the chief technology officer of Bitfinex and Tether, seems to have won on social media. He mocked the “Tether truthers” community who believes that stable coins pose a systemic risk to the crypto ecosystem. :

74% of people who are worried, disturbed, or confused about Tether now have this expression.

– Paolo Ardoino (@paoloardoino) February 5, 2021

Before this article was published, Bitfinex did not respond to a request for comment.

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *