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 printer started to repay the loan in July 2019 by transferring $100 million to Tetherâs reserves.
Bitfinex stated that the second repayment was also done 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.
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âBitfinex 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,â the digital asset platform said.
Bitfinex, who shares a parent company with Tether, is ccused 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.
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Bitfinex targeted by DDoS attacks
Bitfinex has repeatedly questioned the New York Attorney Generalâs oversight authority and accused the office of using âa highly misleading factual presentation,â when it described its loan as nothing more than an IOU from Bitfinex âthat seemed unlikely to be repaid.â
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 âthe biggest bubble in human history.â They also claim that both partners colluded with others to artificially inflate Bitcoin 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 wouldnât go Bitfinexâs way, it would have to admit or deny the allegations and then undergo a lengthy, expensive process during which it should prove that Bitcoinâs skyrocketing gain wasnât 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 stabilising but will continue to monitor the situation closely for additional threats.