NYAG Responds To Bitfinex, Tether Calls The Case A ‘Highly Misleading Factual Presentation'

The New York Attorney General Office (NYAG) has responded to Bitfinex’s appeal to have the authority stop the ongoing investigations against them and Tether. This filing was made with the Appellate court in New York and seems to be slowly mounting pressure on both Tether and Bitfinex whose NY operations were halted as early as January 2017.

Bitfinex and Tether’s Fund Mismanagement Background

Investigations on securities misconduct and operating as one entity began when the NYAG raised claims that Bitfinex was using funds from Tether’s USDT reserves to meet its liquidity needs. This was later spiked by the arrest of Crypto Capital officials, a financial institution, which operated as a shadow bank for crypto projects until authorities cracked down on some illegal activities they had facilitated.

Bitfinex found itself in the middle of the Crypto Capital collateral damage having stored around $625 million funds with the ‘crypto bank’. This forced the crypto exchange to use proceeds from Tether to meet withdrawal demands despite the prohibitions on such activities. In doing so, Bitfinex was looking to meet a short of $850 million arising from the frozen funds but instead attracted the authorities. Reports from the NYAG office claim that the two entities have common shareholders and executives; a position which may have influenced the funds movement.

The NYAG Argument for Investigating Bitfinex

In the latest filing, the NYAG defended itself based on the Martin Act which gives this office the authority to initiate investigations before starting legal proceedings on financial market misconduct. Basically, the appeal will determine the extent to which the NYAG can request for information or start a legal process to prosecute Bitfinex and Tether.

However, Bitfinex in their defense had claimed that the human resources in New York linked to the firm’s operations is not sufficient to place it within the state’s jurisdiction. According to the NYAG, this is not entirely correct given the exchange’s Chief Strategy Officer was based in New York as well as a number of representatives. Furthermore, there has been evidence to show that the Bitfinex platform has been accessed from New York in 2019 despite its ban for almost 2 years.

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.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[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

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,483FansLike
2,795FollowersFollow
4,263FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Gemini Crypto Exchange Opens Up GBP for Buying, Selling, and Trading for UK Customers

Cryptocurrency exchange Gemini is now expanding into the UK. The launch follows obtaining an electronic-money institutions (EMI) license from the Financial Conduct Authority (FCA) after...

Stocks & Gold Getting Hammered But Bitcoin Fundamentals Do Not Support A BTC Crash to $7k

In another red day of the week, Bitcoin dropped to about $10,150 level. Just like the weak price performance, with BTC currently trading around...

People's Bank of China (PBoC) Testing Digital Yuan (DCEP) for Credit Card Payments

China has been aggressively developing its central bank-issued digital currency (CBDC), popularly known as digital yuan. As per the latest reports, the People's Bank...

Indian Crypto Exchange, Pluto, Pulls An Exit Scam on Investors; Making Off With $270K

A Delhi-based crypto exchange, Pluto, has allegedly exit scammed and stolen about $270,000 worth from 43 investors. The local reports suggested that the Economic...

Bitcoin Mining Legalized in Venezuela But Being Centralized with National Digital Mining Pool

Venezuela has fully legalized bitcoin mining. According to a recent decree from the National Superintendency of Crypto Assets and Related Activities (SUNACRIP), the use,...

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