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  • Bitfinex borrowed $700m from Tether in early 2019.
  • The crypto exchange also stated that the repayment was done entirely in fiat currency.

Bitfinex announced that they have started to repay the $700m loan they took from Tether in early 2019 by transferring $100m. The digital asset exchange stated:

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

Bitfinex also stated that the repayment was done entirely 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 office of the New York Attorney General (NYAG) revealed in April that Bitfinex had secured the loan through a line of credit in early 2019 to cover-up losses worth $850 million to its payment processor Crypto Capital. Bitfinex announced recently that they had paid all the interest incurred from the 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.”