1 August 2026
Cryptocurrency Exchange Bitfinex Repays Tether’s Outstanding Loan Of $100M
On 28th February, Bitfinex made an announcement through a blog post that they have repaid another $100,000,000 of the $700 million outstanding loans which it had taken from the Tether reserve.
The New York State Attorney General, Letitia James believes that the crypto exchange platform started facing issues from 2018 when it appointed Crypto Capital Corp., a company which is payment processor based in Panama. The platform gave $850 million to them in order to process customers-withdrawal requests.
After few months, the platform, Crypto Capital, was not capable of processing the orders. However,Bitfinex stated that the payment processor didn’t lose the $850 million rather it was seized and safeguarded.
Initially, Bitfinex said that both the platform, Tether and Bitfinex where financially strong. In the same year, 2018 November, Bitfinex stated that it has lost the access to $850 million permanently.
The exchange failed to recover the funds as a result it engaged in a series of maneuvers with Tether. As per the sources it drained over $700 million from Tether’s reserves that led to a huge gap on Tether reserve.
With today’s repayment, Tether now accounts $200 million pay off of the outstanding loan. The same amount was paid back in July 2019.
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