Bifinex Files Affidavit Claiming They Have Never Served Customers In New York


Bitfinex and Tether’s court case with the New York Attorney General (NYAG) continues like an endless soap opera.

There is additional development in the case and this time the lawers of iFinex are going on the offensive.

Their attorney, Stuart Hoegner, asserted that the prerequisite in Bitfinex’s terms of service is that the customers have to be from foreign lands. He writes:

“Under Bitfinex’s and Tether’s Terms of Service, Eligible Contract Participants (“ECPs”) that transact with Bitfinex or Tether must be foreign entities. Although those foreign entities may have shareholders or personnel who reside in or otherwise have contact with, the United States or New York, Bitfinex’s and Tether’s customers are the foreign entities themselves … Bitfinex and Tether do not transact with any New York ECPs.”

It is important to remember that earlier, representatives from the firms Steptoe & Johnson LLP and Morgan, Lewis & Bockius LLP had noted the same, saying:

“… For purposes of personal jurisdiction, OAG [the Office of the Attorney General] cannot show Respondents engaged in any business activity purposefully directed at New York. OAG tries to confuse matters by referring to isolated instances where Respondents’ foreign customers have shareholders or other personnel in New York. But in those circumstances, Respondents’ counterparties — the ones with which Respondents actually transacted business — are the foreign entities.”

To add to this, they even make an argument that the customer is an entity and not the trader who works with the ECP.

They go on to call the OAG statements misleading.

“While certain ECPs have had shareholders or other personnel in New York, OAG cannot pierce the corporate veil and pretend that those individuals are Respondents’ customers. They are not; the customer in each instance is the foreign ECP.”

The filing states that the OAG has failed to identify a single New York customer who was misled or even considered representations about tether’s backing. Not only that, none of the New Yorkers were harmed during the case.

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