New York Attorney General’s Case Against Bitfinex and Tether Delayed
A New York Supreme Court decision on whether Hong Kong-based crypto exchange Bitfinex will need to turn over documents and comply with a state investigation into the controversial stablecoin Tether (USDT) has reportedly been delayed.
According to a recent report by CoinDesk, Judge Joel Cohen has given a 90-day extension to an earlier injunction on the case following a failed attempt by Tether’s lawyers to dismiss the motion altogether.
Cohen just decided to give a 90 day extension to the case, meaning that AG can still investigate. Tether lawyers tried to appeal to dismiss the motion immediately but Cohen denied. https://t.co/PI8hQeXZgO
— Celia Wan (@celiawan2) July 29, 2019
The investigation into Bitfinex and Tether came after reports revealed that Bitfinex covered up an $850 million loss by borrowing from Tether’s reserves, which the NYAG argues was conducted illegally. Bitfinex has responded by attempting to dismiss the attorney general’s suit on jurisdictional grounds.
Today’s ruling allows Bitfinex and Tether can continue normal operations, however, Tether is still banned from lending additional funds to Bitfinex.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.