The BitFinex & Tether Case: Judge Cohen Needs More Time For Investigation

The New York Attorney General’s office has been going after Tether and Bitfinex since April and today, the 29th of July, was the date for the next case hearing. With the opinion of the community going both ways, the Supreme Court Judge Joel Cohen decided to extend the preliminary injunction as he was not ready with his decision.

90 Days Extension

The defense claimed again that New York-based customers are no longer allowed and claimed that such a customer was identified and removed last week. A new date will be set since the court’s consideration is being extended for another 90 days even though the presenting Judge Cohen said previously that he hoped the case will be resolved today. 

Because of this decision, Tether cannot lend any more funds to BitFinex as of now, but both will continue operating business as usual.

The $850 Million Case

BitFinex and Tether have a parent company called iFinex and the New York Attorney General’s office opened a case against the company in April for covering $850 million worth of USDT. 

BitFinex responded quickly by claiming that the order was “written in bad faith”. The parent company argued that NYAG does not have jurisdiction over the case since they are not serving New York customers any longer. 

New evidence came to light shortly after as CryptoPotato reported. It suggested that the “largest stakeholders” of both Tether and BitFinex resided and worked in New York in the period between 2014 and 2018. New York customers could redeem USDT until November 2017, the two companies have opened 2 banks in 2017 and 2018 and they have loaned USDT to New York trading firm.

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