BTC Wires

BitFinex Announces That It Has Repaid Dues Worth $100 Million To Tether

BitFinex, one of the top cryptocurrency exchanges in the market, has recently announced via a post published on its official blog that it has repaid outstanding loan facility amounting to $100 million to Tether, the operator of stablecoin USDT. The post concerning the same was published on the 2nd of July, 2019.

According to the announcement on the blog, BitFinex repaid the amount through a wire transfer directly to the bank account associated with Tether even though it was not yet time to clear the dues under the stipulations of the loan facility. Yet, taking note of its own financial position at the end of quarter 2 of 2019, BitFinex decided to get done with the prepayment. The post notes:

“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.”

It had earlier been reported that the New York Supreme Court had granted stay of demands to both BitFinex and Tether after they had applied for the same on the 21st of May, 2019. As per the original filing, BitFinex did not reveal the losses suffered to their investors and exchanges.

As a result, when it engaged in several conflicting corporate transactions with Tether, it managed to gain access to nearly $900 million worth of cash reserves from Tether, using those funds to prevent its own insolvency from becoming a matter of public knowledge.

BitFinex was accused of taking a sum of at least $700 million from the reserves of Tether, and using them to hide their own losses and the failure to process client withdrawals more sustainably.

The recent announcement does put some questions to rest but certain questions still remain, especially with regard to BitFinex’s actual financial situation at the moment.