Bitfinex and Tether successfully appealed, without needing to disclose information to New York authorities

Hours after being exposed to major DDoS attacks, Bitfinex announced that it gave another $ 100 million to Tether after taking $ 700 million from Tether's reserves last year.

In one blog post On February 28, Bitfinex revealed that the cryptocurrency exchange repaid $ 100 million of the outstanding loan to the large stablecoin operator Tether (USDT).

Similar to the amount paid earlier in July 2019, Bitfinex has processed the fiat loan via bank transfer to Tether's bank account. According to the post, the payment was made entirely on the original account, while the interest for all the agreed loan was paid up to March 2020.

This $ 100 million repayment marks the latest move in Bitfinex and Tether's long-running controversial relationship as both companies are facing class-action lawsuits – accusing them of manipulating the market. electronic money. Although the crypto community is actively involved in the class action lawsuit, with the famous Bitcoin (BTC) character Andreas Antonopoulos recently agreed to support the legal groups in the lawsuit, both Bitfinex and Tether still remain. continue to deny this allegation.

As a result, Tether once again ridiculed allegations that the company had used the USDT stablecoin to manipulate the Bitcoin price. In another statement, iFinex – the company behind Tether, argued that accusations of market manipulation were “reckless and false,”:

“The allegations in the complaint are unfounded and have a legal basis, and it represents a fundamental lack of understanding of the structure of the cryptocurrency market. In fact, it is reckless and wrong to assume that USDT tokens were issued to manipulate the market. ”

In addition, Tether is also the name in the other controversial topic in the cryptocurrency community, mainly based on existing suspicion of Tether's reserve policy. Launched in 2014, Tether is the first stablecoin backed by the US dollar at a 1: 1 ratio. For the past two years, industry critics have speculated that Tether does not have enough cash reserves in its bank account to guarantee the amount of USDT in circulation.

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Earlier today, Bitfinex experienced many DDoS attacks along with another major cryptocurrency exchange, OKEx. Then, Jay Hao – CEO of OKEx, gave a bonus to the group behind the hack, he argued that OKEx was well prepared to deal with this kind of attack. As a result of the attack, Bitfinex went into maintenance mode, the exchange's representative then announced that the team would deploy the “stricter security level” back to normal operations.

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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