New York State Attorney General (NYAG) Lettia James, in a published memorandum, requested disclosure of documents relating to the alleged agreement between Bitfinex and Tether.
The prosecution's memorandum requires greater transparency from Bitfinex and Tether and claims that these companies have misled their clients and investors. The statement also explains why the Office of the Prosecutor's Office needs to have the requested documents at its disposal: "Although other irregularities do not alter the main reasons for this case, the Office of the Prosecutor's Office needs to obtain documents and information in a timely and organized manner so that it can understand what has happened and what's going on in these companies. ”
The memorandum also claims to have a court order to prevent Bitfinex and Tether from distracting additional reserves to cover stablecoin Tether (USDT) until the investigation is completed. The prosecution also states that the ongoing investigation does not prevent Bitfinex and Tether from continuing to operate their businesses.
At the end of April, the New York Prosecutor's Office reported that Bitfinex had lost $ 850 million and used Tether's resources to cover the USDT stablecoin to cover these losses. Bitfinex rejected these allegations and stated in its opinion that it was embroiled in false claims.
Meanwhile, Bitfinex is launching a pre-sale of its own native LEO token, where it can collect up to a billion dollars.
Previous days, it has been found that there is certainly a link related to shadow banking between Bitfinex and QuadrigaCX. The QuadrigaCX is infamous for being insolvent after its founder and CEO Gerald Cotton died. According to the official version, he was the only person who had access to cold wallets where the main reserves of cryptocurrencies belonging to this exchange were stored. However, many damaged clients believe it was a fraud.
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