Bitfinex Sends $100m Debt Payment to Tether’s Bank Account

Stablecoin Tether confirmed the $100 million payment made by Bitfinex as part of the cryptocurrency exchange's outstanding $700 million loan facility.

Cryptocurrency exchange Bitfinex paid Monday ahead of the agreed due date $100 million of the outstanding loan facility to Tether.

According to a July 2 announcement, Bitfinex made the payment, along with the all accrued interest, to Tether’s bank account in fiat money via wire transfer:

• Bitfinex tranferred $100 million of the outstanding loan facility in fiat to Tether’s bank account.
• The exchange made the prepayment based upon its financial position at the end of Q2 2019.
• All interest accrued under the loan facility up to the end of day on June 30, 2019 have been fully prepaid in fiat as well.

Tether, in response, posted its confirmation of Bitfinex’s payment.

“Tether confirms that on July 1, 2019, it received $100,000,000 in fiat as prepayment on the outstanding loan facility from Bitfinex in its bank account. Tether also confirms that it has received all interest accrued under the loan facility in fiat due to it up to the end of day on June 30, 2019.”

The cryptocurrency exchange borrowed a total of $700 million from Tether earlier this year, according to the legal filings of the New York Attorney General’s office.

The move was to address the financial concerns that arose from having the funds of Crypto Capital seized by authorities. Crypto Capital is the payment processor of Bitfinex, and this incident resulted in an $850 million problem.

Meanwhile, Bitfinex rolled out a major update that would provide for a more sophisticated trading experience, including the launch of derivatives trading.

At press time, Tether (USDT) trades at $1.00, with a 0.94% change in the last 24 hours.

| RELATED: Bitfinex to Go Offline for 7 Hours Due to Upgrade on June 26

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