In a short statement today, Bitfinex – the sister company to central stable Tether – announced that it had paid Tether an outstanding loan balance of $ 550 million. The action closes a larger $ 750 million loan entirely from a $ 900 million credit limit first issued in 2018 – a line of credit that has been at the heart of a New York market manipulation lawsuit and a broader lawsuit from the New York attorney general, from Among other legal procedures.
“Bitfinex is delighted to announce in January that it has repaid the remaining balance of $ 550,000,000 in revolving loan facilities owed to Tether,” wrote Stuart Hogner, Bitfinex, General Counsel. “Bitfinex made this payment in fiat currency by transferring it to Tether’s bank account. All interest due on the loan has been paid. The loan has now been paid early and in full and the credit line has been canceled.”
While the loan is being paid off, the legal process related to the loan continues to go forward. IFinex Inc. – Parent company of Tether and Bitfinex – Several class-action lawsuits as a result of the loan allegedly issued by the company to unsupported Tether which was then used to manipulate the market.
The company also faces scrutiny from the New York attorney general. Last month, iFinex requested that the trial date be postponed so that the company could provide the documents the OTP had requested – the second delay the company required.
Although iFinex’s legal woes won’t go away anytime soon, Bitfinex and Tether CTO Paolo Ardoino appeared to outperform social media, mocking the “Tether Truthers” community who believed that stablecoin was a systematic risk to the crypto ecosystem:
74% of Tether FUDers are now https://t.co/0keEDAJjMZ pic.twitter.com/8F54Xe2HoF
– Paulo Arduino (Paoloardoino) February 5, 2021
Bitfinex did not respond to a request for comment prior to posting.