Stable cryptomonads USDT Tether receives $ 100 million of debt

Bitfinex announced that it has repaid $ 100 million of the loan received from Tether – stable USDT cryptomonade:

“Bitfinex is pleased to announce that on July 1, 2019, he has repaid to Tether $ 100 million of his loan. Bitfinex made this payment by wire transfer to Tether’s bank accounts. Bitfinex made the prepayment on the basis of its financial position at the end of the second quarter of 2019 “.

A controversial loan

The Bitfinex Exchange has borrowed $ 700 million from Tether, the USDT stable cryptomonade, in early 2019. The company needed cash to offset the 850 million dollars lost by the Crypto Capital payment processor. According to the published information, US authorities, the UK, Poland and Portugal seized the funds of the payment processor, also automatically blocking the Bitfinex funds.

In June, Bitfinex launched the LEO token and raised a billion dollars through private sales. The amount raised can therefore be used to cover its losses and loans.

Bitfinex and Tether are controlled by the same executives and key shareholders, although both companies claim to be distinct entities. The USDT stable cryptomontage, which is usually traded around US $ 1, is allegedly backed by US dollars or equivalent cash.

A controversial process

IFinex, Bitfinex’s parent company and other affiliated entities are involved in a legal battle with the NYAG office on the assumed loss of $ 850 million. The New York Public Prosecutor’s Office argued that the financial efforts made between the companies involved were carried out without informing the clients.

Bitfinex and Tether filed an application for the annulment of the trial, arguing that the New York Prosecutor’s Office had neither the jurisdiction nor sufficient evidence to support its allegations.

The next appearance in this process will take place on July 29.

Tether continues to issue stable USDT cryptomonade

In the month of June, Tether issued 500 million USDT. This move coincided with an increase in the Bitcoin price from $ 8,500 to $ 11,000. Will Harbourne, the founder of Ethfinex, a decentralized exchange owned by Bitfinex, explained that it was not about manipulation but about market demand.

Specifically, large customers have the opportunity to request Tether to issue new tokens (in batches of at least $ 100,000). Automatically, demand on the market will generate USDT after a few days, as long as internal issuance procedures continue.