Bitfinex repays loan to „sister“ Tether, allegations remain
The repayment of the $500m loan is expected to help quash allegations of market manipulation.
Crypto exchange Bitfinex, a sister company to stablecoin issuer Tether, has announced in a statement that it has repaid an outstanding US$550 million loan to Tether.
In doing so, it is paying off a previous loan of US$750 million, which in turn was part of a US$900 million loan made in 2018. Paying off this „final instalment“ is all the more important because the overall loan is the subject of litigation over Bitcoin Revolution possible market manipulation, which the New York attorney general’s office is accusing the two related companies of.
„Bitfinex is pleased to announce that in January we were able to repay Tether the outstanding US$550,000,000 from a loan transaction,“ as Bitfinex legal counsel Stuart Hoegner writes to that effect. He adds: „Bitfinex made this payment in the form of fiat money into Tether’s bank accounts. The accruing interest on the loan was also paid off in full. The loan transaction has thus been completed ahead of schedule and in full, and the loan has thus been liquidated.“
Even though the loan has been paid off, the legal battle over the lending deal continues. iFinex Inc, the parent company behind Tether and Bitfinex, is also facing a civil class action lawsuit in addition to the New York regulator’s lawsuit, which accuses the group of using the loan to issue unbacked Tethers to manipulate the crypto market.
Meanwhile, in its lawsuit with the New York attorney general’s office, iFinex has asked for a stay to produce requested documents.
This is the second time the group has sought a stay
Although the drop is still in the air for iFinex, Paolo Ardoino from the management of Bitfinex and Tether is already pleased on social media that the critics are probably looking stupid in the face of the repayment of the loan (see below).
74% of Tether FUDers be like this now https://t.co/0keEDAJjMZ pic.twitter.com/8F54Xe2HoF
– Paolo Ardoino (@paoloardoino) February 5, 2021