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.

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.

As we previously reported, iFinex, the company behind Bitfinex, recently raised $1 billion through a token sale for its new exchange token, LEO (LEO).

More: Judge Punts on Decision in New York Case Against Bitfinex and Tether

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.

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