Bitfinex Announces Full Repayment of $ 750 Million Debt to Tether

Cryptocurrency exchange Bitfinex on Friday announced that it has paid off the remaining $ 550 million in debt to its sister company Tether. In 2018, Tether opened a $ 900 million credit line for Bitfinex, of which the exchange used $ 750 million. Bitfinex returned $ 100 million in 2019 and 2020, and the rest was to be transferred by November 5, 2021.

“Bitfinex is pleased to announce that we paid Tether the remaining $ 550 million in outstanding revolving line of credit in January,” the exchange writes . – Bitfinex made this payment in fiat currency by transferring to Tether’s bank account. All interest related to the loan has been paid. The loan was repaid ahead of schedule and the line of credit was canceled. “

Bitfinex General Counsel Stuart Hegner speaking withThe Block said the companies resorted to the lending option because Bitfinex had “short-term need for money and Tether was willing to lend it on commercially reasonable terms.” In 2019, the New York Attorney General’s Office announced that Bitfinex lost $ 850 million after the money was confiscated from Crypto Capital, an exchange-based payment service. According to prosecutors, Bitfinex tried to cover up the shortage with a Tether line of credit.

The case is currently pending. In January, Bitfinex and Tether announced that they had almost completely completed the transfer of the requested documents to the prosecutor’s office. “Bitfinex continues to move forward with its recovery action against Crypto Capital,” the company announced Friday. – Crypto Capital and its affiliates made Bitfinex a victim. We reserve the right to seek all legal guarantees. We also intend to continue a productive and constructive dialogue with the New York Attorney General’s Office. “

Hegner noted that Bitfinex’s financial performance made it possible to fully repay the debt ahead of schedule. He confirmed that the payment was made in US dollars and not in USDT, that is, in the currency of the loan. The money was deposited into a Tether account at Deltec Bank. Because the line of credit has been canceled, it cannot be reused.

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