Bitfinex and Tether Lose Jurisdictional Battle to NYAG. Will This Affect Cryptocurrency Market?

Libra Coin News
Tue, 08/20/2019 - 06:19
Alex Dovbnya
Many fear that legal woes that surround Tether, the flagship stablecoin issuer, could have negative implications for the crypto market
Cover image via www.123rf.com
Contents

On Aug. 19, New York Supreme Court Judge Joel M. Cohen ruled that the Bitfinex exchange, which is affiliated with stablecoin issued Tether, must provide all pertinent documents to the New York Attorney General (NYAG). However, iFinex, the parent company of Bitfinex, will most likely appeal this decision.

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A legal snub

As reported by U.Today, the judge previously extended his preliminary injunction in the case. iFinex claimed the NYAG lacked jurisdiction in that case and it strived to bar New York customers from using their service. It later turned out that the state’s residents were still able to gain access to the exchange.

As the most recent court filing shows, the NYAG is allowed to continue the investigation since the court denied iFinex’s motion to put a stop to it.

The Court disagrees with the Petitioner that it is (or can be) premature for the Court to determine whether it has jurisdiction to issue orders impacting the rights of Respondents in this proceeding.

iFinex has already spent more than $500,000 on its armada of lawyers as stakes get extremely high.

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Tether FUD

Back in May, Bitfinex was accused of covering up its gargantuan $850 mln loss with the help of its funds, but the exchange swiftly denied any wrongdoings. The whole marked was left in   ‘meltdown mode’ after the news broke.

Despite the legal setback for Tether, which underpins the lion’s share of trading activity on major cryptocurrency exchanges, Bitcoin remains unfazed with its price decisively moving closer to the $11,000 target.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.


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