Bitfinex has unveiled its response on the documents that were provided in the court by the Attorney Office of New York in early July. The exchange believes that the Attorney Office misinformed the Supreme Court regarding the connection of the exchange with users located in New York. The statement was made by Stuart Houegar, the lawyer of the exchange.
The Attorney Office claimed that time that the exchange provided financial services (in particular USDT loans) to New York-based trading company with a company registered in New York being an intermediate. It was mentioned that the company supposedly held an account on the Bitfinex platform.
Meanwhile, the company stated that the mentioned trading company was only an agent between the platform and loaner. At the same time, the latter is a foreign company and comply with the legal framework for cooperation.
"OAG [Office of the Attorney General] tries to confuse matters by referring to isolated instances where Respondents’ foreign customers have shareholders or other personnel in New York. But in those circumstances, Respondents’ counterparties — the ones with which Respondents actually transacted business — are the foreign entities. "
In this context, the loaner is actually a foreign entity, and the third company being an agent in New York only helped to complete the transaction.
Along with this, the document also mentioned that Tether provided services to Bitfinex in 2017 following the platform's policy, which in its turn was amended with the ban to deal with residents of New York.
The Attorney Office stated in early July that it discovered accounts run by Bitfinex in Signature Bank and Noble Bank that are located in New York.
The next hearing of the Bitfinex-Tether case is slated for July 29.