Judge Delays Decision on NY Attorney General’s Case Against Bitfinex

The ongoing case between iFinex and New York Attorney General (NYAG) has taken another turn as the judge delayed the date to decide the fate of the trial.
This came after the attorney of Bitfinex and Tether filed a motion for , alleging that the NYAG’s office did not serve mandatory papers to Bitfinex and Tether.

New York Supreme Court Judge Joel M. Cohen on Monday stated that he needed more time to decide whether to dismiss the case of NYAG or to continue with the trial proceedings.
“I will extend the injunction … if I dismiss the case then obviously the injunction goes with it. If I don’t dismiss the case the injunction will be extended,” the judge said.
“The idea is to keep things where they are until the decision of this motion, so the decision is to extend the stay and … extend the injunction.”
If the judge dismisses the crypto exchange’s motion, the decision will go in favor of the prosecutor and the injunction might get a 90-day extension. However, if the judge squashes the case, the exchange can run its operations, but cannot take any loans from its sister company Tether.
Can New Yorkers still access Bitfinex?
The allegations against Bitfinex first brought by the NYAG in April when it alleged that the exchange from the stablecoin operator to cover up its $850 million in losses incurred by its payment processor.
In a consecutive filing, the NY prosecutor further alleged that Bitfinex was long after it officially wrapped up its business in the state, due to the lack of the mandatory BitLicense.
The exchange, however, squashed all claims and stated that only eligible investors withing the state could access its trading platform. The attorney of the exchange also argued that NYAG has no jurisdiction to investigate the operations of the exchange.
Recently, The Block reported that New York residents can still access and trade Bitfinex with some tweaks on their profile. The exchange came out against the claims and called the report unlawful.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *