The Supreme Court of New York wanted to make a final decision in the case against Bitcoin exchange Bitfinex, but changed his mind

On July 29, Joel Cohen, a judge at the New York State Supreme Court, decided not to make a final decision in the case of the State Attorney’s Office (NYAG) against the Bitfinex exchange. This means that at least one more meeting will take place, and the court will continue to consider the case for the next 90 days, reports The Block.

Thus, in April, the prosecutor's office obtained a prescription for Bitfinex and Tether, according to which the reserves of the USDT issuer were actually frozen. The agency accused the exchange that it concealed a loss of $ 800 million and covered it at the expense of reserves Tether Limited. Note that both companies belong to iFinex Inc.

NYAG believes that the stock exchange served state residents and violated the Martin Law, but representatives of the site denied the charges. The latter are convinced that state prosecutors do not have jurisdiction in this matter, since all Bitfinex clients are foreign residents, as described in the user policy. It is worth mentioning here that recently independent researchers managed to deceive the site and start trading while being residents of New York.

With this, Tether really opened a credit line for Bitfinex, and the exchange, according to prosecutors , managed to borrow about $ 750 million to ensure liquidity after its own funds were blocked in Panamanian processing accounts of Crypto Capital Corp.

Tether stressed that their updated provisioning policy implies the possibility of partial redundancy. According to the company, they were not obliged to notify users about loans for Bitfinex, and the exchange itself was allegedly not obliged to notify about liquidity problems.

One way or another, Bitfinex was able to conduct LEO token LEO, within which the exchange raised $ 1 billion. It is noteworthy that NYAG subsequently saw signs of securities in these tokens.

Note that the lawyer iFinex did not try to achieve the full completion of the investigation, he asked the court only to allow the company not to participate.

The prosecution has no answers as to whether Tether is a commodity, security, or foreign currency. The company firmly stated that the USDT does not fall into any of these categories, but if they decide otherwise in the US, the prosecutor’s office will quickly have the necessary powers.

Read more about this high-profile litigation at the link .

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