Bitfinex Says It Repaid Tether for $550M Loan at Center of NYAG Probe
Bitfinex says early Friday it repaid fully of the loan to Tether.
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A half-billion dollar loan has been closed out, but multiple court cases grind on In a short statement today, Bitfinex — the sister company to centralized stablecoin Tether — announced that it has repaid Tether an outstanding loan balance of $550 million. This action fully closes out a larger $750 million loan from a $900 million credit line first issued in 2018 — a credit line which has been at the center of a market manipulation lawsuit in New York and a broader lawsuit from the New York Attorney General, among other legal proceedings. “Bitfinex is happy to announce that in January it....
The NYAG has said Tether and Bitfinex have been cooperating in its inquiry, which is expected to progress more quickly once the documents are provided.
Though the Tether settlement may help bring in more transparency, experts believe that state-centric bans may not be the way out. A long-standing legal drama finally found resolution on Feb. 23, with the New York Attorney General’s office announcing that it had come to a settlement with cryptocurrency exchange Bitfinex after a 22-month inquiry into whether the company had been trying to cover up its losses — touted to be worth $850 million — by misrepresenting the degree to which its Tether (USDT) reserves were backed by fiat collateral.According to the terms of the announced settlement,....
New York regulators are forcing Tether to be fully transparent about its reserves, at the cost of not serving New York residents. Bitfinex and Tether settled with the New York Attorney General office in the landmark case against Tether. New York authorities alleged that Tether misrepresented the degree to which Tether (USDT) coins were backed by fiat collateral.The settlement requires Bitfinex and Tether to pay $18.5 million for damages to the New York State, as well as submit to periodic reporting of their reserves. The terms of the settlement mandate Bitfinex and Tether to report their....
The NYAG found that Tether and Bitfinex misrepresented the assets backing USDT and obscured the loss of $850 million in user funds.