New York Supreme Court Judge Joel M. Cohen ruled to extend the preliminary injunction he filed in May for another 90 days. This happened on Monday when the New York Supreme Court Judge Joel M. Cohen said he needed more time to make a final decision on whether to dismiss the NYAG’s case entirely or reject Bitfinex and Tether’s motion of dismissal.
Bitfinex was accused in April of borrowing from Tether’s reserves continuously which may have led to the loss of hundreds of millions of dollars worth of customers’ funds held by a payment processor in Panama.
It issued an ex-parte court order in April demanding that Bitfinex turn over documents and also stop tapping into Tether’s reserves.
But earlier, Bitfinex and Tether’s lawyers complained to New York State Supreme Court Judge Joel M. Cohen that the companies had spent $500,000 already just to have 60 lawyers simply find documents that the NYAG’s office has asked for. Part of the expense coming from the fact that the respondents use 10 different communications systems.
Bitfinex responded in May with a motion totally against the court order. Last week, an affidavit was filled to imply that the NYAG( Attorney General of New York. ) misrepresented a number of material facts.
https://en.wikipedia.org/wiki/Attorney_General_of_New_York
According to Hoegner, the NYAG has no jurisdiction over the companies.
“Bitfinex and Tether do not transact with any New York ECPs [eligible contract participants].”
However, the attorney general’s office has made a number of filings to support its accusations that Bitfinex served New York residents and New York-based companies far longer than the company claims.
In conclusion, the information that NYAG’s office is looking for includes tether issuance and redemptions, its current corporate, trading and client accounts, tax filings, and information about any customers who wanted to withdraw cash from Bitfinex. If this information is not provided, This case might as well drag on with both companies spending more money
The aim of the Attorney general is clear, as for now, no one knows what or how the case will end. It appears that the case will drag on until both parties are able to reach a compromise.
Thanks for reading.
