In a brief statement, Bitfinex – the sister company of the centralized stablecoin Tether – announced that it has repaid Tether an outstanding balance of $ 550 million. This promotion fully secures a larger loan of $ 750 million from a $ 900 million line of credit first issued in 2018 – a line of credit that the center of a market manipulation lawsuit in New York and a broader New York Attorney General lawsuit, among other legal proceedings.
“Bitfinex is pleased to announce that it repaid the remaining $ 550,000,000 balance of the outstanding revolving loan to Tether in January,” wrote Stuart Hoegner, general counsel at Bitfinex. Bitfinex made this payment in fiat currency, transferred to Tether’s bank account. All interest due on the loan has been paid. The loan has now been repaid in full and early and the credit line has been canceled. “
While the loan is being repaid, legal action around the loan continues to be advanced. iFinex Inc. – the parent company of both Tether and Bitfinex – is facing multiple class action lawsuits as a result of the loan claiming the company released unbacked Tether which was then used to manipulate the market.
The company is also being investigated by the Attorney General of New York. Last month, iFinex requested that a trial date be postponed so that the company could produce documents requested by the Office of the Attorney General – the second delay requested by the company.
Despite iFinex’s legal troubles not going away anytime soon, Bitfinex and Tether CTO Paolo Ardoino seemed to be making a round of victory on social media, poking fun at the community of “Tether Truthers” who believe the stablecoin poses a systemic risk to the crypto ecosystem:
– Paolo Ardoino (@paoloardoino) February 5, 2021
Bitfinex did not respond to a request for comment before publication.