March 28, 2024

Bitfinex Announces Repayment of $ 550m Loan to Tether

Bitfinex Announces Repayment of $ 550m Loan to Tether

On Friday, the Bitfinex crypto exchange announced that it had fully settled with the issuer of the stablecoin Tether, paying off the balance of the loan in the amount of $ 550 million.

After the exchange lost $850 in 2018million due to the seizure of the accounts of the company in which they were deposited, to cover losses, Bitfinex opened a credit line with an affiliated company Tether. Sharing ownership and management, they did not disclose more than $600 million in loans before being charged by the New York Attorney General's Office with misappropriation of funds.

After the transfer of such amount, the issuer did not havesufficient reserves for 100% security of stablecoin with fiat, which, in addition to the attention of law enforcement agencies, caused a wave of suspicion from the crypto community.

Now the exchange has announced that back in January it producedthe final payment on a loan. Late last month, the bank that services Tether also reported that USDT is fully backed by real dollars, although it did not provide an external audit report.

</p>