Breaking: Bitfinex has repaid $550 million to Tether, the remaining loan balance
|- The cryptocurrency exchange Bitfinex and sister company of Tether says it has repaid the $550 million outstanding loan.
- In 2018, Tether took a $900 million loan for Bitfinex and had legal issues in 2019 from it.
- According to Bitfinex's general counsel Stuart Hoegner, the loan was repaid in U.S. dollars and not USDT.
Stuart Hoegner, the general counsel for Bitfinex has stated that the 2018 loan was taken because Bitfinex needed cash for the short-term. In 2019, the New York Attorney General accused the exchange of losing $850 million after Crypto Capital, a payment processer seized the funds.
According to Bitfinex, the loan was due until November 5, 2021, which means the exchange has paid it ahead of schedule and in U.S. dollars, not Tether (USDT). Hoegner stated that the exchange managed to repay the loan early thanks to its great financial performance adding:
Bitfinex continues to make progress in its recovery actions against the Crypto Capital group around the world. Crypto Capital and related parties victimized Bitfinex. We reserve our rights to seek all available legal remedies against them. We also look forward to continuing our productive and constructive discussions with the New York Attorney General’s Office.
Tether was facing a deadline on January 15 to surrender all the required documentation requested by the New York Prosecutor's Office. Tether stated once again that it is backed by U.S. dollars and will work towards increasing transparency in 2021, stated Stuart Hoegner in a podcast with Peter McCormack.
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