Bitfinex repaid a $750 million loan taken from Tether

The cryptocurrency exchange Bitfinex said it had repaid early a loan previously taken from its affiliated company Tether. The remaining balance of $550 million was transferred by the platform in January.

Bitfinex announces loan repayment to Tether ⬇️https://t.co/nGOBl3vYWA

— Bitfinex (@bitfinex) February 5, 2021

According to the statement, Bitfinex made the payment in fiat currency to Tether’s bank account.

“All interest due on the loan has been paid. The loan is now repaid early and in full, and the credit line has been cancelled,” the statement stressed.

The exchange borrowed $750 million under a credit line opened for it by Tether in 2018, according to an interview with The Block by Bitfinex’s chief of legal Stuart Hogner.

He said it was driven by a “short-term need for funds,” and Tether’s terms were “reasonable.”

Bitfinex paid $100 million of USDT to the issuer twice toward repaying the principal — in July 2019 and February 2020.

Hogner noted that the exchange’s financial performance enabled a full and early repayment. The loan’s repayment term expired on November 5, 2021.

In 2019, Bitfinex raised $1 billion in a private placement of native LEO tokens.

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