Bitfinex

Bitfinex: It Shouldn’t Have to Collect Documents for NYAG During Appeal

October 9, 2019 at 5:43 AM | By Jit Sutradhar News

Bitfinex is holding his documents despite objections from the attorney general’s office in New York (NYAG).

In a letter submitted to the New York Supreme Court State Tuesday, lawyers for Bitfinex, Tether and other affiliated entities wrote that a request made by the office of NYAG on a loan of $ 900 million between sister companies Bitfinex and Tether must be denied.

Bitfinex lawyers say the NYAG office cites no authority in support of his request, which further suggests that the state’s attorney seems to think that the “collection charges are meaningless.”

That said, the letter admits that simply collect the documents require a major expense.

The letter also pushed back against accusations that the exchange is stagnating in their document production needs court-ordered.

“Accusations of OAG regarding the delay are all deceptive events, and unfairly attack the motives of respondents and their lawyers,” the letter – signed by Jason Weinstein of Steptoe & Johnson, and David Miller and Zoe Phillips, Morgan, Lewis & Bockius – states.

As an example, the letter states:

“OAG complains of being unable to conduct a ‘thorough’ or ‘coherent’ investigation (OAG Letter, at 2), but fails to mention that Respondents have already produced material pertaining to customers with New York connections.”

These materials include apparently more than 70,000 pages of documents produced between May and July 2019 (NYAG office previously said that respondents “failed to produce a single non-judicial document” between April and August 2019).

Bitfinex lawyers presented a series of exhibitions to support their letter, including materials appeal of the bag and a transcript of a court proceeding May 6, 2019.

Six months on

Office NYAG claimed in April that Bitfinex lost access to $ 850 million, which had a payment processor, and covered up loan loss reserves of Tether, which were intended to support the stablecoin USDT in a ratio of eleven.

NYAG lawyers successfully secured a court order of the Supreme Court of New York, who ordered the companies to submit all the documentation about the process and prevent Tether loan additional funds to Bitfinex. In August, an appeals court granted a temporary stay Bitfinex, which allows companies a break before handing over any documents.

NYAG’s office asked the judge to order New York Bitfinex collect all the documents related to the loan to ensure that they could be delivered immediately whether the government wins the appeal.

While Bitfinex pushed against the application to collect all the documents requested in a previous court order in his letter Tuesday, the company said it would not oppose a request to extend the mandate for another 90 days.

The appeal is scheduled to be heard in January 2020, the letter said, adding:

“Even if a decision issues immediately, a further period of 90 days under the injunction will take us to April 2020 – a full year from when the injunction first issued. This is by any measure an excessively long period of time, and certainly more than enough time for tether holders to decide in full view of the facts whether they would like to continue holding their tethers or to redeem.”

Tuesday’s letter comes on the heels of a new putative class action lawsuit alleging Bitfinex and Tether caused immense damage to the crypto market as a result of using Bitcoin USDT to manipulate the market. The lawsuit, filed in federal court, refers to action against NYAG Bitfinex as evidence supporting his allegations.

Bitfinex image via Shutterstock

This article is republished from coindesk.com. If you have any questions, objection or any other matter you can contact us. Thank you for visiting our website.

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