Bitfinex and Tether Pray Courts To Remove NYAG’s Restrictions
Tether, Ltd. that issues the USDT stablecoin, has asked a US court Judge to be lenient by allowing it to use its cash reserves while the New York Attorney General (NYAG) conducts its investigation.
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The NYAG is currently examining the business operations of Tether Ltd. and cryptoasset exchange Bitfinex.
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According to the court papers submitted on Monday, May 13th 2019, the legal representatives of both parties have not been able to decide what Tether’s management should be allowed to do with its cash holdings and other company assets.
The NYAG does not want Tether Ltd. or “any affiliated entity” to use the stablecoin issuer’s funds while US prosecutors are conducting their investigation. The NYAG’s office is also pursuing a 90-day injunction against IFinex, Inc.
Meanwhile, the attorneys representing IFinex are seeking a 45-day injunction which includes allowing companies or individuals affiliated with Tether and Bitfinex to be able to redeem USDT.
The Office of the Attorney General (OAG) had confirmed that an investigation against IFinex regarding the alleged “fraud being carried out by Bitfinex and Tether” was ongoing. Attorney General James stated:
“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of co-mingled client and corporate funds.”