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, having paid off the balance of the loan in the amount of $ 550 million..

After the exchange lost $ 850 million in 2018 due to the seizure of the accounts of the firm in which they were deposited, Bitfinex opened a line of credit from affiliated company Tether to cover losses. With common property and executives, they did not advertise a loan of more than $ 600 million until the New York Attorney General’s Office was accused of illegal use of funds..

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

Bitfinex Announces Repayment of $ 550m Loan to Tether

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

text: Ivan Malichenko, photo: 1zoom

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