Bitfinex, Tether Obtain Stay of Demands from New York Supreme Court

Bitfinex, Tether Obtain Stay of Demands from New York Supreme Court



Bitfinex, Tether Obtain Stay of Demands from New York Supreme Court

In the court proceedings against the cryptocurrency exchange Bitfinex and its affiliated stablecoin issuer Tether, initiated at the end of April by New York Attorney General (NYAG) Letitia James, the companies have been granted a stay on demands by the New York Supreme Court which was requested on 21 May.

The two companies were accused of covering up a USD 850 million loss aimed to defraud New York investors. But according to the latest developments, Justice Joel M Cohen of the New York Supreme Court (NYSC) ruled in favor of the companies’ motion for an immediate stay of the document demands. So as a consequence, the court now only requires the parties to present information and documents concerning personal jurisdiction over the companies and doesn’t need any other types of documents.

In yesterday’s motion, both companies argued through their legal representatives that the NYAG has neither personal nor subject matter jurisdiction in this case. It was also pleaded that the NYSC could not be appealed to, because both companies don’t even operate out of New York and along with not impacting any investment markets in the state.

In addition to the stay of demands appeal, Bitfinex also presented a motion to dismiss the charges against them entirely. According to the exchange, a subsequent hearing has been scheduled on the motion for 29 July 2019.

As per the filings at this moment, Bitfinex has still not revealed the losses to their investors, with CXOs of the company as well as Tether engaged in a series of suspicious and conflicting corporate transactions amounting up to USD 900 million from Tether’s cash reserves. Bitfinex allegedly withdrew about USD 700 million from Tether’s reserves and to hide their losses from the investors as well as their inability to handle client withdrawals.

 

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