Bitfinex Repays $100 Million to Tether for Its Outstanding Loan

Cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Bitfinex on Tuesday announced that it has started to repay the loan obtained from Tether and already transferred $100 million to its sister company’s account.

“Bitfinex is pleased to announce that on July 1, 2019, it repaid $100,000,000 of the outstanding loan facility to Tether,” the digital asset exchange noted.

The Taiwan-headquartered exchange also detailed that the repayment was done fully in fiat currency.

“Bitfinex made this payment in fiat wired to Tether’s bank account. This amount was not yet due to be paid to Tether under the facility, but Bitfinex has made the prepayment based upon its financial position at the end of the second quarter of 2019,” the exchange added.

Suspicious financial activity

In April, the office of the New York Attorney General (NYAG) revealed that Bitfinex secured a $700 million loan from its sister company Tether through a line of credit in early 2019 to cover up $850 million worth of losses incurred by the exchange to its payment processor Crypto Capital.

The NYAG also obtained a court order to look into the suspicious business practices of iFinex, the parent company of both Bitfinex and Tether.

However, the company challenged the claims of the NYAG in court, mentioning that the prosecutor neither has jurisdiction nor has evidence to prove its claims. The NYAG now has to file its opposition by July 8, which will give the crypto company another two weeks to respond.

In the recent announcement, Bitfinex detailed that it has paid all the incurred interest from that loan.

“Also on July 1st, Bitfinex fully prepaid all interest accrued under the loan facility to Tether up to the end of day on June 30, 2019, also in fiat,” the exchange noted.

Meanwhile, iFinex has reportedly raised $1 billion in a private token sale. While disclosing the financials of the company to the potential investors, the crypto company reported that, with an expense of $14 million, it raked a net profit of $404 million in 2018 - an increase of $78 million from the previous year.