In an announcement on July 2, Crypto exchange Bitfinex said they have begun repaying their loan to stablecoin Tether. The exchange recently borrowed around $700 million from the stablecoin through a line of credit and today repaid $100 Million through wire transfer.
The problems for Bitfinex arose following supposed seized funds by authorities in three separate states. This problem left an $850 million shortfall between Bitfinex and its payment processor, Crypto Capital.
The brief announcement stated that the wire transfer took place July 1st between its exchange and Tether’s bank account. The exchange highlighted that this payment was ahead of schedule and as a result of a positive financial position for the company through Q2 of 2019.
This amount was not yet due to be paid to Tether under the facility, but Bitfinex has made the prepayment based upon its financial position at the end of the second quarter of 2019.’ The company further highlighted that they have ‘fully prepaid all interest accrued under the loan facility to Tether up to the end of day on June 30, 2019, also in fiat.
The latest announcement follows a long-standing legal battle between the exchange and the New York Attorney General’s Office (NYAG) after they had been accused of the cover up of an alleged $850 million loss.
The exchange has been accused of taking $700 million from Tether’s reserves in order to cover the losses as and service withdrawing customers. The NYAG is expected to file its opposition to the case by July 8 and parent company of Bitfinex, IFinex will have until July 22 to file its rebuttal.