New York Court Reaffirms State Attorney’s Jurisdiction over Bitfinex and Tether

The New York State Supreme Court ruled that the state attorney’s office has full authority to investigate the activities of the Bitfinex cryptocurrency exchange.

The environment around Bitfinex continues to heat up. The decision was published on August 19
court, according to which the New York prosecutor’s office has full authority to continue the investigation of alleged fraud and misleading exchange customers. The prosecutor’s office is trying to prove that concealing the loss of $ 850 million Bitfinex at the expense of Tether reserves is a direct deception of investors from New York.

The published document states that Judge Joel Cohen rejected Bitfinex’s motion to end the persecution under New York law.

“The court does not consider that the decision on jurisdiction in this case, which may affect the rights of the defendants, may be premature. The court, relying on evidence and current legislation, considers it admissible to consider this case. Therefore, the petition of the defendants is rejected, and the temporary ban on the investigation is also canceled, ”the court explains its position.

Representatives of Bitfinex and Tether in this case are trying to prove that the companies did not serve the residents of New York, which means that an investigation into them is unlawful. The judge, however, considered the statements of the companies unfounded and allowed the investigation to continue in the state jurisdiction. Therefore, Bitfinex and Tether will be forced to provide documents of interest to the investigation about their operating activities.