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Bitfinex Has Paid To Tether The First $ 100 Million Of Debt For $ 700 Million

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Bitfinex Cryptocurrency Exchange announced the start of the repayment of outstanding loan facility to its affiliated company Tether. As part of the process, Bitfinex transferred the first $ 100 million to Tether’s account.

In late April, the New York Prosecutor General’s Office charged Bitfinex having suffered a loss of $ 850 million, it concealed this fact, partially using the funds of its affiliate issuer stablecoin Tether to cover the damage.

Later these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital. Nevertheless, the exchange assured users that it is actively cooperating with the relevant departments to restore access to money.

In May, as part of the ongoing proceedings, it was confirmed that Bitfinex borrowed $ 700 million from Tether. Now the exchange has begun to refund.

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. 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.

At the same time, Bitfinex and Tether keep stopping the proceedings initiated against them, insisting that the authorities in New York do not have the appropriate authority or sufficient evidence against them.

By July 8, the prosecutor's office may protest the position of the defendants, according to CoinDesk. If this happens, Bitfinex and Tether will have time until July 22 to submit a response, after which the parties will have to meet again in court on July 29.

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