Another $100 Million Loan Facility Repayment to Tether Completed By Bitfinex

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February 29, 2020 4:07 pm

Another $100 Million Loan Facility Repayment to Tether Completed By Bitfinex
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A few days back, Bitfinex unveiled that the cryptocurrency exchange reimbursed $100 million of outstanding loan facility to major stablecoin operator Tether (USDT). Bitfinex has declared repayment of another share of the loan facility to Tether, after enduring a significant rejection of service attacks (DDoS) attack.

Likewise, a previous indemnity in July 2019, Bitfinex processed the transaction in order through wire transfer notified to Tether’s bank account. The payment has been made all on account of principal, while interest on all costs due below the facility contract has been prepaid up to March 2020.

he current $100 M repayment signifies although another transit in the long-term provocative connection of Bitfinex and Tether as both groups are suffering case prosecutions attacking them of crypto market administration. Notwithstanding, the Crypto culture is actively associated in the class-action prosecution, with famous Bitcoin (BTC) influencer Andreas Antonopoulos particularly recommended Kyle Roche of Roche Cyrulnik Freedman as the reason the firm should conduct the proceedings. Ere summoning the firm “uniquely qualified to represent members of the class,” Antonopoulos drafted: 

“In the Kleiman matter, Mr Roche has repeatedly demonstrated an understanding of the technical and functional properties of bitcoin, cryptocurrencies, blockchain, and their underlying cryptographic principles superior to many other attorneys.”

Both Bitfinex and Tether continue to dismiss accusations that the companies were involved in manipulating the crypto market. Tether has repeatedly mocked charges that the firm used its United States-pegged stablecoin USDT for manipulating Bitcoin’s price earlier. In a different report, iFinex, the firm behind Tether, explained that market manipulation allegations are “reckless and false,” declaring:

The allegations in the complaint are without merit or legal basis and exhibit a fundamental lack of understanding of the market structure of cryptocurrencies. Indeed, it is reckless and false to allege that USDT tokens are issued in order to manipulate markets.”

Moreover, Tether is another debatable matter in the crypto society, mainly based on the existing suspicion over Tether’s reservation policy. Tether is the first-ever stablecoin, launched in 2014 to be supported by the United States dollar at 1:1 proportion.

For the past two years, industry censors theorised that Tether did not have a suitable amount of assets to support the number of USDT inflow. Earlier today, Tether’s affiliate exchange Bitfinex suffered multiple DDoS strikes adjacent another important global crypto exchange OKEx. Consequently, OKEx CEO Jay Hao offered a bonus to the team qualified for the hack, claiming that OKEx was well-prepared to deal with such kinds of attacks. 

Therefore, Bitfinex reportedly went to sustaining mode, with exchange diplomats finally insisting that the team performed a “stricter security level” as the usual exercise was recommenced.

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