Bitfinex Repays Another $100M Loan Facility to Tether

Bitfinex Repays Another $100M Loan Facility to Tether

Bitfinex has announced that it has repaid another part of the loan facility to Tether, just hours after a major denial of service attack (DDoS) occurred.

Bitfinex revealed in a Feb. 28 blog post that the crypto-currency exchange repaid $100 million in outstanding loan facility to major stablecoin operator Tether (USDT).

Bitfinex processed the transaction in fiat via wire transfer wired to Tether’s bank account, similar to a previous repayment in July 2019. The payment was made “all on behalf of principal,” according to the post, while interest on all amounts due under the facility agreement was prepaid until March 2020.

Bitfinex,Tether’s Long-Term Controversial Relationship

The new $100 million repayment marks yet another move in Bitfinex and Tether’s long-term controversial relationship as both firms face class lawsuits accusing them of manipulating the crypto market. Despite the active involvement of the crypto community in the class action lawsuit, with famous influencer Bitcoin (BTC) Andreas Antonopoulos recently expressing support for one of the legal teams in the case, both Bitfinex and Tether continue to deny allegations that the companies were involved in manipulating the crypto market.

As such, Tether has once again ridiculed allegations that the firm used its US-pegged stablecoin USDT to manipulate the price of Bitcoin earlier today. iFinex, the firm behind Tether, argued in another statement that market manipulation claims are “reckless and false,” stating:

“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.”

In addition, Tether is also the subject of another controversial topic within the crypto community, largely based on the existing skepticism about the reserve policy of Tether.

OKEx and Bitfinex Cryptocurrency exchanges suffered multiple denial of service attacks.  The denial of service attacks resumed on Feb. 28, at approximately 4:30 AM EST. As announced by the Twitter account of the exchange, Bitfinex was hit this time too.

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Abdulhay Mahmoud 414 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.