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Bitfinex announces Tether loan repayment

A half-billion dollar loan has been closed, but there are several court cases grinding on

Bitfinex, the sister company of centralized stablecoin Tether, revealed today in a brief statement that it has repaid Tether an outstanding $550 million loan balance. This action completely closes a greater loan of $750 million from a credit line of $900 million first released in 2018, a credit line that has been at the center of a New York market manipulation lawsuit and a wider New York Attorney General lawsuit, among other legal proceedings. “

Bitfinex is happy to announce that in January it repaid the remaining balance of $550,000,000 of the outstanding revolving loan facility to Tether,” Stuart Hoegner, Bitfinex general counsel, wrote. “Bitfinex made this payment in fiat currency wired to Tether’s bank account. All interest due on the loan has been paid. The loan has now been repaid early and in full and the line of credit has been canceled.” 

According to cointelegraph.com, the legal action involving the loan continues to go forward while the loan is repaid. As a result of the loan, iFinex Inc., both Tether and Bitfinex’s parent firm is facing several class-action lawsuits that say that the company issued unbacked Tether that was later used to manipulate the market.

The corporation is now under criticism from the Attorney General of New York. Last month, iFinex called for a trial date to be moved back so that the firm could produce documents demanded by the Attorney General’s Office, the second such delay requested by the company.

Bitfinex and Tether CTO Paolo Arduino appeared to take a victory lap on social media, poking fun at the community of “Tether truthers” who claim that stablecoin poses a systemic risk to the crypto world, amid iFinex’s legal issues not going away anytime soon.

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