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It’s worth noting that there exists some confidence in the tremendous operational liquidity that Bitfinex & Tether have from Bitfinex’s repayment of a $550 MM l
by atian 6y ago
It’s worth noting that there exists some confidence in the tremendous operational liquidity that Bitfinex & Tether have from Bitfinex’s repayment of a $550 MM loan to Tether just this month.
https://www.coindesk.com/bitfinex-says-its-repaid-tether-for-550m-loan-at-center-of-nyag-probe https://www.coindesk.com/bitfinex-says-its-repaid-tether-for...
- JumpCrisscross 6y agoWhy is affiliates transferring cash amongst themselves reassuring?
- gruez 6y agoAFAIK the 550M loan was because bitfinex lost that money somehow (not sure whether it was because of a hack or their accounts got frozen). Them repaying it back would mean they were able to cover up that hole with their profits, which means tether is more capitalized than before.
- qeternity 6y agoIt means absolutely nothing. The "loan" was made many months after the funds were transferred. In reality, Bitfinex does not treat Tether as an segregated account...it's just part of Bitfinex. When they lost money, they just used Tether funds and later on they formalized it as a loan when they started to be investigated. It's like saying you gave yourself a $1k loan and then repaid it. It's just going from one pocket to the other. It's meaningless.
- atian 6y agoBitfinex makes a tremendous profit from being the most liquid spot exchange. It's meaningful in the fact that they have strong cashflow to back a stablecoin.