Bitfinex pays back loan to „sister“ Tether, allegations remain

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The repayment of the 500 million US dollar loan should help to refute the allegation of market manipulation.

Bitfinex, a sister company of stablecoin publisher Tether, announced in a press release that it has paid back an outstanding loan of $ 550 million to Tether

It is paying off a previous $ 750 million loan that was part of a $ 900 million loan granted in 2018. Paying off this „final installment“ is all the more important as the entire loan is the subject of a legal dispute over any market manipulation that the New York prosecutor is accusing of the two related companies.

„Bitfinex is pleased to announce that we were able to repay the outstanding USD 550,000,000 from a loan deal to Tether in January,“ as Bitcoin Pro platform legal advisor Stuart Hoegner writes . He adds: “Bitfinex made this payment in the form of fiat money into Tether’s bank accounts. The interest incurred on the loan was also paid off in full. The loan transaction was thus completed prematurely and in full, the loan is thus canceled. “

Even after the loan has been paid off, the lending litigation continues

IFinex Inc, the parent company behind Tether and Bitfinex, is facing a lawsuit from the New York supervisory authority as well as a class action lawsuit in which the group is accused of having issued unsecured Tether with the help of the loan in order to manipulate the crypto market.

In the process with the New York Public Prosecutor’s Office, iFinex has meanwhile asked for a delay in order to be able to produce the requested documents . This is the second time that the group wants to get a delay.

Although the drops for iFinex have not yet been sucked, Paolo Ardoino from the management of Bitfinex and Tether is happy in the social media that the critics are looking stupidly out of the laundry in view of the repayment of the loan (see below).