Bitfinex Repays Tether the Remaining Loan Balance of $550M

Bitfinex Repays Tether the Remaining Loan Balance of $550M
-Bitfinex announced that it repaid the remaining balance of a $550 million loan to Tether.
-In 2018 Bitfinex borrowed $750 million from Tether.
-Moreover, Tether is one of the most liquid exchange pairs with BTC.

Crypto exchange Bitfinex announced that it repaid the remaining balance of a $550 million loan to its sister firm, Tether.

Bitfinex Announces Loan Repayment to Tether

Bitfinex exchange’s parent company iFinex Inc. made full payment of the $750 million loan. However, putting an end to speculation of wrongdoing that threatened to wind up the company. 

Bitfinex announced that,

“The loan has now been repaid early and in full and the line of credit has been cancelled.”

In 2018 Bitfinex borrowed $750 million from Tether. In the last two years, the exchange repaid $200 million of the amount. And currently cleared the remaining $550 million. The loan formed the basis of the justice department’s case against the firm.

Moreover, the transaction was made public in April 2019. After the New York Attorney General’s Office (NYAG) claimed Bitfinex lost $850 million. In client and corporate funds to payment processor Crypto Capital Corp. And used assets from Tether’s reserve to secretly cover the shortfall.

In the latest court proceedings, Tether and iFinex were asked to hand over financial documents to the NYAG by January 15. The process went smoothly, according to the company. More importantly, it also noted the end of the stablecoin providers’s injunctive restrictions for giving loans to Bitfinex.

Recently, Tether FUD became popular after the stablecoin issuer had allegedly invested its USDT reserves in Bitcoin. Furthermore, Tether is one of the most liquid exchange pairs with BTC, a cryptocurrency reserve at the firm that created a lot of risk for the industry.

According to CoinGecko, the USDT price is at $1.00, at the time of writing.

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