Bitfinex and Tether Gains Victory over NYAG in $900 Million Court Case
Cryptocurrency exchange Bitfinex has won a motion in the New York Supreme Court, meaning it doesn't need to turn over the documents regarding its use of Tether to the New York Attorney General's Office (OAG).
According to the court order on Tuesday, the Appellate Division of the Supreme court stayed a ruling made by the New York Supreme Court Judge Joel Cohen.
Back in August, Cohen ruled that Tether and the related entities must produce documents about the $900 million loan to Bitfiinex, that shares leadership and shareholder with cryptocurrency Tether.
Each of the stablecoin USDT token is supposed to be backed by one US dollar, but New York attorney general Letitia James accused the company in April for not doing so.
Moreover, they were engaged in a cover-up to hide the loss of $850 million, held by a payment processor by borrowing from Tether’s reserves. Now as per the order, the respondents moved to stay an order to turn over the documents about the loan.
“It is ordered that the motion is granted on condition the appeal is perfected on or before November 4, 2019 for the January 2020 Term,” the judge wrote.
While Stuart Hoegner, general counsel to Bitfinex and Tether is looking forward to “addressing the substantive issues before the appellate court,” NYAG spokesperson said they seek to have Judge Cohen’s upheld and continue its investigation.
“The injunction that prohibits the movement of money between Tether and Bitfinex is still in place, that has not changed,” the spokesperson said.