Amid ongoing legal proceedings, Bitfinex announces Tether loan repayment

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In a brief statement, Bitfinex – the sister company of Centralized Stablecoin Tether – announced today that it has repaid Tether an outstanding loan balance of $ 550 million. This move fully closes a major $ 750 million loan from a $ 900 million line of credit first issued in 2018 – a line of credit that is at the heart of a New York market manipulation lawsuit and a larger one The New York Attorney General’s lawsuit stood at other court cases.

“Bitfinex is pleased to announce that in January it repaid the remaining $ 550,000,000 of the outstanding revolving credit facility to Tether,” wrote Stuart Hoegner, General Counsel at Bitfinex. “Bitfinex made this payment in fiat currency which was transferred 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 terminated. “

While the loan is being repaid, legal action related to the loan will continue to progress. iFinex Inc. – the parent company of Tether and Bitfinex – is facing multiple class action lawsuits over the loan alleging the company issued unsupported Tether which was then used to manipulate the market.

The company is also under review by the New York Attorney General. Last month, iFinex requested to postpone a hearing to allow the company to produce the documents requested by the Attorney General’s office – the second delay the company has requested.

Although iFinex’s legal troubles are not going to go away anytime soon, Bitfinex and Tether CTO Paolo Ardoino seemed to be racing to victory on social media, poking fun at the community of “tether truth makers” who believe the stablecoin is systemic Risk to the crypto ecosystem:

74% of the Tether-FUDer are now like this https://t.co/0keEDAJjMZ pic.twitter.com/8F54Xe2HoF

– Paolo Ardoino (@paoloardoino) February 5, 2021

Bitfinex did not respond to a request for comment prior to posting.