Bitfinex to Appeal Court Decision Affirming NYAG Jurisdiction

Crypto exchange Bitfinex said it will appeal the court decision that effectively killed its attempt to refrain from handing over documents to the New York Attorney General on the grounds of jurisdictional overreach.
Earlier today, refused the argument that the US laws do not apply against the popular crypto exchange, which is headquartered in Hong Kong but registered in the British Virgin Islands.

The court confirmed that the State’s Attorney General has sufficient authority to investigate the activities of  iFinex—which owns both Tether and Bitfinex— and ordered the controversial affiliated firms to turn over financial documents related to an alleged $850 million fraud.
The ruling not only grants the crypto-adverse attorney general jurisdiction over the Bitfinex’s broader activities, but also eliminated the stay imposed on the NYAG in May after the modified the substance and scope of the original injunction filed by NY Attorney against Bitfinex’s business.
Bitfinex released a statement challenging the New York Attorney’s accusations, arguing again that the court filings were an overreach.
“Any assertion that we have misled our customers about Tether (USDt), its backing, or about the negotiated transaction between Bitfinex and Tether is false. We remain committed, as ever, to protecting our customers, our business, and our community against the Attorney General’s meritless claims,” Bitfinex said in a statement.
Bitfinex and Tether saga continues
The US authorities have stepped up their enforcement against the crypto firms with the NY attorney  because of duplicitous statements about the digital tokens’ backing. Specifically, Bitfinex is accused of using $700 million from Tether reserves to cover up losses of $850 million
The crypto exchange defended itself saying the money was deposited with a Panamanian-company called Crypto Capital but then was seized and safeguarded in several jurisdictions, including Poland, Portugal, the UK, and the United States, all through no fault of Bitfinex. Based on these arguments, lawyers for the companies have asked for the case to be dismissed.
However, Bitfinex also wanted the supreme court to help it further and deny the NYAG’s request to turn over documentation about the loan and line of credit that Tether provided to its sister cryptocurrency exchange.

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