Bitfinex reports on the payment of debt to Tether

Back in 2018, the cryptocurrency exchange Bitfinex took a loan from Tether in the amount of $900 million. Now the platform has reported on the full repayment of the debt.

According to the exchange’s statement, Bitfinex used only $750 million of the $900 million. At the same time, $100 million was paid in 2019 and 2020, and the remaining $550 million was transferred to Tether accounts in January of this year, and the payment was made before the scheduled date of November 5, 2021. This was facilitated by the good financial performance of the exchange.

According to the head of the legal department of Bitfinex, Stuart Hoegner, the money was borrowed from Tether due to a “short-term lack of cash.” Apparently, this lack of cash was associated with the freezing of $ 880 million of the Bitfinex exchange in the accounts of Crypto Capital. A legal battle is underway to recover the funds.

“Bitfinex is seeing notable progress in recovering funds from Crypto Capital Group accounts around the world. Crypto Capital has made Bitfinex a victim. We reserve the right to use all available legal remedies against them, and we also look forward to continuing to cooperate with the New York Attorney General’s Office,” Hogner said.

He also said that the payment was made in US dollars, and not in USDT stablecoins, since it was in this currency that the loan was received. The funds were transferred to Tether’s accounts at Deltec Bank in the Bahamas. At the end of January, representatives of Deltec Bank confirmed that all USDT issued to the market are fully backed by Tether funds stored in the bank’s accounts.