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Bitfinex has repaid a $550M balance on loan to Tether

Bitfinex paid a loan that is at the heart of allegations of fraud
  • Bitfinex has repaid $550 million of the loan amount to Tether and closed a larger settlement
  • After the repayment of the loan, multiple legal actions around the exchange began to move forward
  • The exchange will now move forward with a productive and constructive discussion with NYAG

Last month, Bitfinex, a crypto assets exchange, closed out a $550 million loan amount. According to Yogita Khatri’s report, the exchange claimed on Friday that it paid the amount on loan to its sister firm, Tether. Paying the outstanding amount the exchange has fully closed a larger $750 million loan from a $900 million credit line issued in 2018.

The credit line remained in the centre of the crypto market manipulation lawsuit by the New York Attorney General (NYAG). However, this lawsuit remained a broader one among other legal proceedings.

What loan amount did Bitfinex repay to Tether?

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In 2018, Bitfinex had borrowed an amount of $600 million from Tether. The exchange used that fund to share executives and ownership with its sister firm. However, in 2019, the transaction was made public, after the NYAG allegedly claimed that the exchange lost $850 million in client funds to payments processor Crypto Capital Corporation. According to the attorney general, the funds were used from Tether’s reserve to secretly cover the shortfall. However, now the funds have been repaid and Paolo Ardoino the CTO of bitfinex, and the general counsel of Tether and Bitfinex, has also retweeted the report confirming the statement.

Legal actions around the loan began to vanish

Bitfinex paid the loan in USD, not in Tether. Stuart Hoegnar, the general counsel of both Bitfinex and Tether, the amount has been transferred to Tether’s account in Deltec Bank in the same denomination it was received. Since the loan amount has been settled, legal actions have begun to move forward, as the firm faces multiple class-action lawsuits. After the loan was repaid, Paolo Ardoino took a victory lap on Twitter. Paolo poked fun at the critics and tweeted, 74% of the FUDers will now be confused.

The exchange will now continue to work with NYAG

Bitfinex stated the exchange had repaid the loan amount. Additionally, it mentioned that the exchange continues to globally progress in its recovery actions against the Crypto Capital group. The exchange reserves its rights to seek all available legal remedies against Crypto Capital and related parties that victimized the exchange. Now, the exchange will continue its productive and constructive discussions with the NYAG’s office.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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