Bitfinex Makes Another $100M Loan Repayment to Tether

Cryptocurrency exchange Bitfinex has allegedly paid back another $100 million to Tether, thus now covering more than 20 percent of its $700 million loan facility they took last year. The Stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term printer started to repay the loan in July 2019 by transferring $100 million to Tether's reserves.

Bitfinex stated that the second repayment was also made entirely in fiat currency, which adds more backing to USDT tokens, which saw its fiat coverage drop to below 80 percent following the credit line given to its sister exchange.

"Bitfinex is pleased to announce that on Friday, February 28, 2020, it repaid $100,000,000 of the outstanding loan facility to Tether. Bitfinex made this payment in fiat wired to Tether's bank account. This payment is all on account of principal. Interest on all amounts due under the facility agreement has been prepaid up to March 2020," the digital asset platform said.

Bitfinex, who shares a parent company with Tether, is accused of using $700 million from the stablecoin reserves to cover up losses of $850 million. The crypto exchange defended itself, saying the money was deposited with a Panamanian-company called Crypto Capital but then was seized and safeguarded in several jurisdictions, including Poland, Portugal, the UK, and the United States, all through no fault of Bitfinex.

Bitfinex targeted by DDoS attacks

Bitfinex has repeatedly questioned the New York Attorney General's oversight authority and accused the office of using "a highly misleading factual presentation," when it described its loan as nothing more than an IOU from Bitfinex "that seemed unlikely to be repaid."

Bitfinex and Tether also face another class-action lawsuit accusing them of fraudulently inflating the cryptocurrency market by printing uncovered USDT tokens in what the plaintiffs describe as "the biggest bubble in human history." They also claim that both partners colluded with others to artificially inflate Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term prices, which shot higher just after the loss of Bitfinex funds was revealed.

However, Bitfinex requests that the entire proceeding be dismissed as the frivolous suit lacks a factual or legal basis, and as such, has little or no chance of being won. Should the decision not go Bitfinex's way, it would have to admit or deny the allegations and then undergo a lengthy, expensive process during which it should prove that Bitcoin's skyrocketing gain wasn't caused by shady activities on its platform.

The news comes shortly after Bitfinex revealed that it has been facing targeted and sustained DDoS attacks. Earlier today, the exchange issued a status update on the DDoS attacks and what it is doing to reduce their impact, saying it is presently stabilizing but will continue to monitor the situation closely for additional threats.