• The hearings are postponed for at least another 90 days.
  • The parties are locked in a legal battle since April.

New York Supreme Court Judge Joel M. Cohen hoped to make a final decision in the case of the State Attorney’s Office (NYAG) against the Bitfinex exchange but changed his mind.  It means that a new date of the meeting will be set, and the jurisdictional battle between Bitfinex and NYAG will continue for at least 90 days.

The parties have been locked in a legal battle since April. However, Monday’s hearing was focused on whether the NYAG had the authority to initiate the investigation.
NYAG  said that the exchange used the reserves of Tether Limited to cover up a loss of $800 million. It is worth noting that both companies are owned by iFinex Inc.

Also, NYAG believes that the cryptocurrency exchange provided services to the residents of New York and thus violated the Martin Law. However, the company denies the charges. They are convinced that NYAG does not have jurisdiction in the case as it does not serve New York residents according to the terms of service.

 Meanwhile, recently, independent researchers managed to bypass the geoblock and start trading on the platform being NY residents.

Tether Limited really opened a credit line for Bitfinex, and, according to prosecutors, the exchange borrowed about $ 750 million to maintain the liquidity after its own funds were locked in the Panamanian processing center of Crypto Capital Corp.

Meanwhile, Tether Limited emphasized that the updated provisioning policy allows for partial reserves. According to the company, they were not obliged to notify users about loans for Bitfinex, and the exchange itself was allegedly not required to inform customers about liquidity problems.

One way or another, Bitfinex managed to perform IEO for LEO tokens and raise $1 billion. Notably, NYAG said that these tokens might be securities.

iFinex attorney did not ask the court to stop the investigation, but rather to preclude iFinex’s participation.

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Analysis: BTC/USD consolidation lags triangle breakout

Bitcoin remained under pressure during the entire weekend. The attempts made to stay above $7,200 support failed, leaving to the path of least resist ace to be below $7,000. Bitcoin’s immediate upside is limited by the 50 SMA on the 2H chart.

More Bitcoin News

Ethereum Price Update: ETH/USD defends $140 support yet again

Ethereum is largely unchanged compared to the levels towards the end of last week. The pressure oozing from the bears continued across the weekend session. Besides action beyond $145 remained limited.

More Ethereum News

Ripple Price Analysis: XRP/USD spirals in freshly reignited downward momentum

Ripple has ignited the bearish momentum breaking the weekend-long support at $0.2160. The losses come after an attempt to break out from the descending channel resistance failed.

More Ripple News

Cardano’s IOHK celebrates 120 staking pulls less than 24 hours after testnet launch

The research firm in charge of developing Cardano, a major cryptocurrency, IOHK was delighted to announce the fantastic performance of the newly launched testnet.

More Cryptocurrencies News


Bitcoin Weekly Forecast: It's all about whales again

On the cryptocurrency market, regulators, governments and central bankers and other big names like that are inferior to whales when it comes to generating trends and price movements.

Read the weekly forecast