NY Attorney General has Jurisdiction Over Bitfinex Probe: Court
- The judge gave the crypto companies another 90 days to turn over all requested documents.
Bitfinex and Tether must continue handing over documents regarding an alleged $850 million cover-up to the New York Attorney General (NYAG), a judge ruled on Monday.
According to the ruling, the firms will need to publish information about a $700 million line-of-credit that Tether gave to Bitfinex.
The ruling denied the defendants' request to dismiss the charges entirely as they questioned the jurisdiction of the NYAG over the business of the British Virgin Islands-registered companies.
“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,” New York Supreme Court Judge Joel M. Cohen stated.
“That said, the Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter. Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”
A tainted loan to cover up hundreds of millions in losses
The investigation into the crypto companies began in April when the NYAG’s office first alleged that the cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term covered up an $850 million loss incurred by its payment processor Crypto Capital. In the process, Bitfinex turned to Tether to obtain a line-of-credit of $700 million. An injunction issued in May froze the possibility of further lending as another $200 million were about to flow from Tether to Bitfinex.
The fresh ruling gives the two firms another 90 days to turn over the documents to the New York prosecutor. The injunction would expire on October 14.
Meanwhile, the defendants claimed that they spent $500,000 and appointed 60 lawyers to find documents asked for by the NYAG’s office. In response to that, the NYAG revealed the nature of the demanded documents to the court and stated that all the documents were necessary for business operations and should be at the “fingertips” of the companies.
Bitfinex and Tether must continue handing over documents regarding an alleged $850 million cover-up to the New York Attorney General (NYAG), a judge ruled on Monday.
According to the ruling, the firms will need to publish information about a $700 million line-of-credit that Tether gave to Bitfinex.
The ruling denied the defendants' request to dismiss the charges entirely as they questioned the jurisdiction of the NYAG over the business of the British Virgin Islands-registered companies.
“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,” New York Supreme Court Judge Joel M. Cohen stated.
“That said, the Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter. Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”
A tainted loan to cover up hundreds of millions in losses
The investigation into the crypto companies began in April when the NYAG’s office first alleged that the cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term covered up an $850 million loss incurred by its payment processor Crypto Capital. In the process, Bitfinex turned to Tether to obtain a line-of-credit of $700 million. An injunction issued in May froze the possibility of further lending as another $200 million were about to flow from Tether to Bitfinex.
The fresh ruling gives the two firms another 90 days to turn over the documents to the New York prosecutor. The injunction would expire on October 14.
Meanwhile, the defendants claimed that they spent $500,000 and appointed 60 lawyers to find documents asked for by the NYAG’s office. In response to that, the NYAG revealed the nature of the demanded documents to the court and stated that all the documents were necessary for business operations and should be at the “fingertips” of the companies.