Bitfinex: Repaid $100 million in cash to Tether

Bitfinex, the most tradable currency exchange, said it had repaid $100 million in outstanding loans (unpaid loans) to the stable currency issuer and Bitfinex sister company Tether. This proves that its bold token sales plan is effective – it aims to sell $1 billion in LEO tokens to investors to restructure stolen funds.

Usdt

The exchange said in the announcement:

“Bitfinex is pleased to announce that on July 1, 2019, we repaid $100 million in outstanding loans to Tether. Bitfinex remitted the money to Tether's bank account in French currency. This amount has not been paid Tether, but Bitfinex recorded the advance payment based on its financial status at the end of the second quarter of 2019."

"As promised, the Finex-Lanister family is repaying the money," Bitfinex chief technology officer Paolo Ardoino wrote on Twitter, even comparing Bitfinex to the reputable Lannister family in Game of Thrones. .

Last year, the New York Attorney General (NYAG) accused Tether of extracting about $700 million from foreign exchange reserves to help Bitfinex restructure its capital. Previously, several foreign governments seized the same amount of money from Bitfinex's payment processing company Crypto Capital in a global fraud investigation.

The cryptocurrency world is angry at the news that Tether has drawn funds from its reserves. Tether has long claimed that the stable coins it issued are supported by the US dollar. In the end, they had to admit that only 74% of the USDT received support from the US dollar.

To make up for this gap, Bitfinex launched the sale of LEO tokens on May 4, with the goal of eventually raising $1 billion. In just a few months, LEO's market value soared to $1.7 billion, the issue price rose to $1.75, and the market value on CoinMarketCap rose to 13th place.

As bitcoin prices soared in recent weeks, Tether's role in the bitcoin market has been increasingly examined, and some believe that the company has been deliberately using USDT to put too much pressure on the market to push up the bit. The price of the currency accelerates the capital restructuring of Bitfinex.

As it happens, Tether issued another USDT worth $100 million yesterday. Some media said that in order to deal with the rough demand for the expected demand, Tether is created out of thin air, and does not necessarily have a complete reserve at the time of issuance.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

DeFi

🤩 The US Cryptocurrency Conundrum: Regulating in Chaos 😱

Charles Hoskinson, creator of Cardano, expressed to Cointelegraph that regulators in the US, like the SEC, have effec...

Blockchain

Cardano's ADA price is dropping towards $0.52. Is it time to buy the dip?

The value of Cardano (ADA) may decrease below $0.52 according to short-term forecasts, however long-term optimists re...

Market

Evolution of demand, yield, and products in the ETH Staking market after Shanghai upgrade

Currently, we are still in the dividend period of ETH Staking, so it is advisable for ETH holders to participate in S...

Blockchain

Cardano (ADA) Breaks Out: Is a New All-Time High on the Horizon? 🚀

Cardano (ADA) has made a notable price breakthrough, surging to $0.710 for the first time since May 2022 on Thursday....

News

Interpreting the Performance of 14 L1 Public Chains in Q1: Stacks Emerges as Dark Horse, Network Usage Rate Generally Decreases

After the running-in period, various public chains have entered the "internal competition" stage.

DeFi

Cardano's DeFi Ecosystem Flourishes Total Value Surges to Almost $450M as ADA Rockets 17% on Layer 1 Push!

This week, the total value locked (TVL) of Cardano-based tokens skyrocketed to more than $440 million, surpassing the...