Within a recent official announcement, Bitfinex – the relative company to centralized stablecoin Tether – revealed that it’s repaid Tether an impressive loan balance of $550 Mln. This action completely closes out a bigger $750 Mln loan from a $900 Mln credit line first issued earlier in 2018 – a credit line that has been at the middle of a market manipulation lawsuit in New York and a broader lawsuit from the NY Attorney General, among other legal proceedings.
“Bitfinex is happy to reveal that earlier in January it repaid the remaining balance of $550 Mln of the outstanding revolving loan facility to Tether,” added Stuart Hoegner, general counsel at Bitfinex. “Bitfinex made this payment in fiat currency wired to Tether’s checking account. All interest due on the loan has been paid. The loan has now been repaid early and fully and therefore the line of credit has been canceled.”
While the loan is repaid, action surrounding the loan continues to maneuver forward. iFinex Inc. – the parent company of both Tether and Bitfinex – is facing multiple legal lawsuits as a result of the loan which alleges that the corporate-issued unbacked Tether was then meant to manipulate the market.
The firm is additionally facing scrutiny from the NY Attorney General. Earlier last month iFinex requested that an attempted date be pushed back therefore the firm could produce documents requested by the Office of the Attorney General – another such delay firm has requested.
Despite iFinex’s legal troubles not depart anytime soon, Bitfinex as well as Tether CTO Paolo Ardoino appeared to take a lap of honor on social media, poking fun at the community of “Tether truthers” who believe the stablecoin poses a systemic risk to the cryptocurrency businesses.