Bitfinex And Tether Write Letter To Supreme Court; Deny NYAG's Request For Documents On $900M Loan

The office of New York Attorney General in April alleged that Bitfinex has tried to cover up its losses of over $850 million by using the USDT reserves from its sister company Tether. Bitfinex claimed that the amount taken from Tether was in the form of a loan.

The NYAG's attorneys got an injunction from the New York State Supreme Court, which ordered Bitfinex and Tether to produce all the documents involved in the loaning process. However, Bitfinex has been pushing to get away without producing those documents claiming that it would be a costly task to accumulate all those papers

In a recent letter written by the Bitfinex on Tuesday, its attorneys have asked the court to deny NYAG's request. The attorneys claimed that NYAG in its filing did not cite any authority that obliged their request for the documents. The letter comes on the heels of a new class-action lawsuit filed against Bitfinex and Tether for causing damage to the crypto market by manipulating Bitcoin prices using USDT.

The letter also quashed other claims made by NYAG about Bitfinex trying to stall the court procedure by delaying the document production requirements. The letter said,

“OAG’s allegations concerning delay are in all events misleading, and unfairly attack the motives of the Respondents and their counsel,”

“OAG complains of being unable to conduct a ‘thorough’ or ‘coherent’ investigation (OAG Letter, at 2), but fails to mention that Respondents have already produced material pertaining to customers with New York connections.”

The produced “material” mentioned in the letter include 70,000 pages of documents presented by the exchange between May and July 2019 to counter NYAG's claims that the accused did not produce any non-jurisdiction document between April and August.

The court case has been going on for 6 months and the next hearing is scheduled for January 2020.

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Hank Klinger
Hank Klinger
Hank Klinger has been working online for seven years now. He has written for several national companies. Hank has been a part of our team for over three years, reviewing ICOs, new cryptocurrencies and helping us keep up to date with industry news. His primary knowledge is in marketing, sales, and advertising, and he uses that knowledge to research and pick out reliable sources of information to use as a basis for his writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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