iFinex Inc requires another 30 days to deliver the New York Attorney General’s trial papers.
iFinex Inc—the parent corporation of crypto-exchange Bitfinex and stablecoin issuer Tether (USDT)—has applied to the Supreme Court of New York demanding that the pending trial date be delayed further.
According to a filing submitted to the New York court system on Jan. 19, the legal counsel for iFinex Inc requested another 30 days to produce the documents demanded by the Office of the Attorney General (OAG).
The paper creation process had to be finished by Jan. 15—a date that was itself an extension of the initial deadline of Dec. 16. Legal counsel for the claimant, Charles Michael, said in Tuesday’s court that a “substantial volume” of content had already been turned over to the OAG, but that “additional agreed-upon items” had yet to be given.
The submission noted that in addition to the time it would take to generate the documents in question, sufficient time would also have to be set aside for the OAG to examine their validity. The filing notes that:
“The parties will need a few more weeks to produce the supplemental information, for OAG to review the production, and to discuss further among themselves what if any further proceedings may be necessary.”
The current court battle dates back to April 2019, when the New York Attorney General argued that Bitfinex had tried to conceal the loss of $850 million of consumer funds by accepting fraudulent loans from Tether, with which it shares executive leadership. The suspects are further alleged to have run an unlawful offering of shares.
The NYAG investigation has previously discovered that no more than 74% of Tether’s stablecoins were currently backed by real cash reserves. This has not kept more than USDT $24 billion from being released to date, and stablecoin is already active in the highest volume of crypto spot trade on a regular basis.
Chief technology officer of Bitfinex, Paulo Ardoini, recently took to his Twitter account to remind observers that Tether was registered and regulated under the Financial Crimes Enforcement Network, and that any suggestion that USDT represented a security was just an example of fear, doubt and uncertainty, or FUD.
Reminder: #Tether is registered and regulated under FinCEN as all the centralised competitors. Strict KYC/AML is applied to all Tether direct users, as the other main issuers are doing. Less regulated is just FUD. Ask yourself who benefits from spreading such misinformation? 🤡 https://t.co/0izlgpJ75r
— Paolo Ardoino (@paoloardoino) December 30, 2020
Given Tether’s perceived influence in driving up the price of Bitcoin (BTC), and the extent of its everyday use by cryptocurrency traders, many fear a negative outcome on behalf of iFinex Inc, however justified, may wreak havoc on the value of BTC and the rest of the cryptocurrency market.
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