Cryptocurrency exchange Bitfinex has recently asserted that it has repaid the loan amount of $750 million to Tether.
The exchange shares leadership with Tether, the issuer of stablecoins. In 2018, Bitfinex alleged that Crypto Capital had committed an $850 theft. Crypto Capital is the payment processor of the exchange.
Bitfinex Is Suspected To Suppress The Loss
After the ongoing investigation since 2018, the office of the New York Attorney General (NYAG) expressed the suspicion of the exchange’s attempt to conceal the loss. While Crypto Capital is accused of fraud, the exchange is suspected to lend money to cover up the money gap after the theft.
In 2019, NYAG released a statement stating both Tether and Bitfinex engaged in multiple questionable transactions to control the damage. The exchange made more than $900 million transactions to Tether.
Stuart Hoegner, the general counsel of Bitfinex informed that the company faced a money crunch, and Tether assisted by lending reasonable prices in that respect. According to the opinion released by the New York Attorney General’s office, the utilization of Tether resource, in this case, implies fraud.
In March 2019, Tether declared that the lending was not fully based on US dollar currencies and it included equivalent cash and also multiple other assets. While Bitfinex recently claimed to make a repayment of $750 million in regard to the loan, the legal unrest still prevails.
Vice-Chair of Digital Currency Global Initiative, Rohan Grey has stated the repayment must be verified before it is trusted. While the refund may be accepted, the legal question remains about Tether’s assets which are not entirely backed by US dollars.
Executives of Tether have not made any remark about this matter yet.