A US$500 million loan has been settled, but multiple lawsuits are still going on.
In a brief statement, Bitfinex, the sister company of the centralized stablecoin Tether, announced that it has repaid Tether’s outstanding loan balance of $550 million. This move fully settled the US$750 million loan out of the US$900 million credit line first announced in 2018. This loan plunged it into New York market manipulation lawsuits and other legal proceedings, as well as its ongoing legal dispute with the New York Attorney General Core.
Bitfinex General Counsel Stuart Hoegner wrote: “Bitfinex is pleased to announce that in January this year, it repaid an outstanding revolving loan of US$550 million to Tether. Bitfinex made the payment by wire transfer to fiat currency in Tether’s bank account. All The interest on the loan has been paid in full. Now, the loan has been repaid in full in advance and the credit line has been cancelled.”
While repaying the loan, legal proceedings regarding the loan are still continuing. As a result of this loan, iFinex Inc., the parent company of Tether and Bitfinex, faced multiple class-action lawsuits, accused of issuing unsecured Tether and then using it to manipulate the market.
iFinex is also facing review by the New York Attorney General. Last month, iFinex requested that the trial date be postponed so that the company can provide the documents requested by the Attorney General’s Office. This is the second time the company has requested a postponement of the trial.
Although the legal troubles of iFinex won’t disappear anytime soon, Paolo Ardoino, the chief technology officer of Bitfinex and Tether, seems to have won on social media. He mocked the “Tether truthers” community who believes that stablecoins pose a systemic risk to the crypto ecosystem. :
74% of people who are worried, disturbed, or confused about Tether now have this expression.
-Paolo Ardoino (paoloardoino) February 5, 2021
Before this article was published, Bitfinex did not respond to a request for comment.
Author/ Translator: Tae Kon Jung