New York Judge Extends Suspense in Bitfinex-Tether Case

News
Mon, 07/29/2019 - 18:27
Alex Dovbnya
New York Supreme Court postpones its ruling on the case against Bitfinex and Tether, meaning that they can continue operating normally
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Contents

On July 29, New York Supreme Court resumed hearing on the case against cryptocurrency exchange Bitfinex and affiliated stablecoin issuer Tether to no avail.

Judge Joel M. Cohen has extended his preliminary injunction for 90 days, which means the New York Attorney General’s office will be able to continue its investigation into the exchange.

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Cryptocurrency Exchange Bitfinex and Tether Score Another Legal Victory

All eyes on Bitfinex

During this particular hearing, the judge was supposed to decide whether the NYAG lacks jurisdictional power to demand documents from the companies. A ruling in Bitfinex’s favor would put an end to the investigation, but Cohen needs more time to ruminate on the case.

The idea is to keep things where they are until the decision of this motion, so the decision is to extend the stay and … extend the injunction.

Lawyers who represent the controversial exchange order a motion to dismiss a case against them given that both Bitfinex and Tether are based overseas and do not serve New York residents.

Cover-up claims

As reported by U.Today, the legal battle between the NYAG, Letitia James, and Bitfinex started back in April when the latter was accused of covering up its $850 mln loss with the help of Tether. Bitfinex swiftly denied these ‘false assertions.’

The event kept Bitcoin enthusiasts on the edge of their seats given that it could have a major effect on the BTC price. There have been multiple allegations that Tether is able to be manipulated the crypto market.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


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