NYAG Continues To Investigate Bitfinex Exchange And Tether As Court Denies iFinex’s “Stay” Motion

  • iFinex’s motion for a temporary stay of the investigation is denied
  • Letitia James of NYAG to resume investigation into Tether as “Securities or Commodities” & Bitfienx’s presence in New York

The Supreme Court of the State of New York has denied the motion of iFinex, the company behind the exchange Bitfinex and stablecoin Tether, for a temporary stay on the NYAG investigation.

The company was seeking to terminate the investigation on the grounds that the court lacks “personal and subject matter jurisdiction” because Bitfinex is an off-shore cryptocurrency exchange and does not have a connection to New York.

But now…

“Respondents’ (iFinex) motion is denied, and the temporary stay of the investigation is dissolved,”

the court ordered.

Tether As “Securities Or Commodities” & Bitfienx’s Presence In New York

The basic facts regarding the scope of the investigation and iFinex’s businesses involve Tether as “Securities or Commodities” where iFinex contends that Tether tokens do not constitute an ownership interest in Tether and stablecoins are not bought for investment purposes rather facilitates other virtual currency transactions.

Letitia James of NYAG meanwhile, wants to gather more facts “before a determination is made.”

As for Bitfienx’s presence in New York, iFinex insists that they have purposefully avoided contact with New York and in January 2017 revised its Terms of Service to ban New York customers from using its trading platform.

However, James counters that the investigation concerns activities dating back to at least January 2015 and that there is evidence that Bitfinex allowed some customers located in New York to transact on its platform after changing the terms.

It further knowingly permitted traders to use the exchange, loan tethers to New York-based virtual currency trading firm, and opened accounts and utilized services at New York-based banks.

Now that the iFinex warranting a stay— even though substantial costs are expected to incur in continuing to comply with the order — is denied, NYAG will continue its investigation.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[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


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

China Should Seize the ‘First Mover' Advantages of Launching A CBDC: PBoC

China should aim at becoming the first country to issue digital currency as part of its efforts to internationalize the yuan and lessen its...

These 2 DeFi Forks Take a Harsh Beating As The Originals Reclaim Their Dominance

Up until the mid of last week, Curve clone Swerve was enjoying a record $942 million in deposits, or total value locked (TVL), as...

Biggest Banks Involved in Moving $2 Trillion Illicit Funds, Reveals FinCEN Documents

And they say bitcoin is used for criminal activities. The leaked documents of $2 trillion transactions, a tiny proportion of the SARs submitted over the...

Binance Launches the ‘Innovation Zone' to Justify DeFi FOMO Listings

Leading spot exchange Binance has created an “Innovation Zone” to list newer tokens. "The team has created the Innovation Zone, which will allow users to...

Altcoins Crash as Bitcoin Plummets Under $10,600; Overall Crypto Market Looks Pretty Bad

Bitcoin has been stuck around $11,000 since the middle of last week, very slowly moving upwards. Until today that is. The digital asset went...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today