Bitfinex repays $550 million to Tether, the remaining loan balance
Bitfinex has now repaid a $750 million loan to Tether, which thereby cancels the $900 million credit lines between the two firms – iFinex Inc and Tether. Bitfinex had borrowed $750 million in 2018 from Tether and managed to repay $200 million in the last two years.
According to an announcement published on 5 February, the Bitfinex team stated:
Bitfinex made this payment in fiat currency wired to Tether’s bank account. All interest due on the loan has been paid. The loan has now been repaid early and in full and the line of credit has been cancelled.
In 2018, the United States Department of Justice (DoJ) accused iFinex of using a $750 million credit to manipulate losses. It also alleged that Tether was printing USDt without being fully backed. Last year, regulators also asked both the companies to hand over financial documents related to the case to the New York Attorney General. The development of the case was closely followed by the crypto community, causing FUD associated with USDt. By the end of the case, however, Tether’s injunctive restrictions for providing loans to Bitfinex were lifted.
The case resulted in Tether FUD becoming quite popular. Bitfinex CTO Paolo Ardoino addressed the same in his latest tweet:
— Paolo Ardoino (@paoloardoino) February 5, 2021