Court Once Again Rules Against Bitfinex, Dissolving Motion against the NYAG

The Bitfinex/Tether case involving a misappropriation worth $850 million is still ongoing and while the companies are looking to withhold certain information regarding the case citing “extraterritorial” reasons, a New York judge has now ruled that the defendants must continue to divulge any information required of it by the New York Attorney General’s (NYAG) office.

The ruling was passed on Monday, the 19th of August, requiring both Bitfinex and Tether to release any information about the cover-up or alleged “loan“ within 90 days. The judge, Joel M. Cohen, has said that the court is well within its right in asking for all required information, and has jurisdiction over the case, contrary to claims by the “petitioners”.

According to Cohen:

“The Court disagrees with the Petitioner that it is (or can be) premature for the Court to determine whether it has jurisdiction to issue orders impacting the rights of Respondents in this proceeding…Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”

The NYAG had already demanded information from the defendants, requiring them to tender more than a few documents which detail the transactions. Legal representatives on behalf of the defendants then filed a motion, seeking an outright dismissal of the whole case, on the grounds that the NYAG had no jurisdiction over the case because the companies supposedly did not run in New York or have any clients from the state.

The defendants have also lamented the cost of complying with the Court’s initial injunction and have said their obedience has already cost more than $500,000 which was required to engage the services of at least sixty lawyers.

Bitfinex and Tether have officially filed an appeal against the judge’s most recent ruling.

Image Credits: Stock Photo Secrets


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