The True Picture of multiple "Battle" between Bitfinex and NYAG
The New York Attorney General's Office (NYAG) sued the parties for the first time because Bitfinex and Tether conspired to use the USDT reserve to cover a $850 million loss.
On April 25, the New York Attorney General's Office (NYAG) sued the parties for the first time because Bitfinex and Tether conspired to use the USDT reserve to cover a $850 million loss. At the time, in the absence of immediate funding from Bitfinex, Tether provided it with a $625 million loan and an additional $900 million in line of credit to maintain operations.
This is another "confrontation" between NYAG and the legal dispute between Bitfinex and Tether's parent company iFinex. This time, the confrontation lasted for 3 months.
By May 22nd, Bitifnex announced its first victory for NYAG: New York Supreme Court Judge Joel M. Cohen approved a motion to partially suspend the document, limiting the scope of documents that NYAG could trace. The exchange argued that the Martin Act gave NYAG the power to conduct fraud investigations, but because the exchange does not operate in the state, NYAG is not authorized to investigate it. Bitfinex said it was encouraged when the court made this decision.
However, NYAG seems to be using all the “means” litigations of Bitfinex and Tether. On July 8, NYAG resubmitted the latest evidence from the Bitfinex and Tether cases to prove that Bitfinex and Tether have been serving customers in the New York area, starting with Bitfinex's second round of confrontation.
The development of this matter has not been finalized. We look forward to the positive "just" of the two sides on July 29.