NY Attorney Office provides new documents under Bitfinex-Tether investigation

Posted 09 July, 2019

The Bitfinex-Tether case remains underway in the State of New York. The Attorney Office of New York has submitted new documents that can confirm their position in the court regarding the term of servicing clients in the NY jurisdiction, which turned to be longer than stated by the companies.

The document called the Memorandum of Law in Opposition was passed to the Supreme Court of New York by the Attorney Office on July 8.

The preliminary statement reads:

"With respect to whether the Court may properly exercise its jurisdiction in this matter, even a cursory examination of the facts gathered to date in the OAG' s investigation shows that Respondents have extensive and consistent contacts to New York concerning the matters under investigation."

During the previous hearing, the subject companies Bitfinex and Tether claimed that the case must be taken off the table citing that they do not cooperate with clients from New York, while their platforms are not available for regional users.

However, the new document is expected to confirm the fact that NY-based users logged in the platform in late December 2018, as the Attorney General noted.

Along with these documents, the prosecutor also provided pieces of evidence that Bitfinex has accounts in Signature Bank and Noble Bank that is located in New York.

"In February 2018, Bitfinex and Tether opened accounts at New York-based Signature Bank and utilized those accounts for client transactions...From approximately June 2017 to October 2018, Bitfinex and Tether utilized accounts at Noble Bank, a division of Noble Markets LLC headquartered in New York, to process client transactions," as the document says.

As a result, the Attorney Office once again claimed that the defendants cooperated with local companies in New York for business issues...For example, they opened a trading account with one of NY company dealing with virtual currencies already in 2019.

For reference, the case NY Attorney Office against Bitfinex-Tether was launched this April when the Attorney General Letitia James had stated that iFinex, the company behind Bitfinex and Tether, had used $ 900 million of Tether funds to cover a loss of $ 850 million.

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