New York Prosecutor Office Submits New Evidence on Bitfinex and Tether

The New York City Attorney General’s Office (NYAG) presented new evidence that the Bitfinex cryptocurrency exchange and Tether served customers in New York longer than they claimed.

It was reported that on July 8, as part of the ongoing investigation into Bitfinex and Tether, NYAG submitted a legal memorandum to the New York Supreme Court, as well as 28 physical evidence. The document notes:

“Even a cursory analysis of the facts gathered so far during the investigation shows that the defendants have extensive and consistent contact with New York on the issues being studied as part of the investigation.”

The material evidence presented by NYAG demonstrates the interaction of Bitfinex and Tether with New Yorkers over a period longer than the companies claimed.

Earlier, Bitfinex and Tether stated in the New York Supreme Court that the case should be closed because they “have no relation to New York investors, do not allow state residents to work on their platforms, do not advertise their services, and in no way lead its activities in the region. “

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However, as stated on the basis of a number of evidence gathered and presented to the court, Bitfinex granted clients from New York access to the platform on December 18, 2018. In addition, the prosecutor’s office submitted a correspondence between Bitfnex and Galaxy Digital, where it was stated that the fund would become a Bitfinex client in October 2018.

In addition, during the relevant period of time Bitfinex had accounts in two New York banks – Signature Bank and Noble Bank – “and at least one New York cryptocurrency firm, using them to transfer money from Bitfinex and Tether customers” . NYAG added:

“The defendants have repeatedly attracted New York firms to assist them in achieving their business goals, including making statements about the operation of the Bitfinex trading platform and Tether cash support in the markets. Only in 2019, the defendants opened a trading account in at least one New York cryptocurrency firm. ”

NYAG also mentioned the recent release by the Bitfinex exchange of the LEO token: “In the recent IEO respondents, for example, there are all signs of issuing securities subject to the Martin Act, and there is reason to believe that the issue is related to the issues being studied as part of the investigation,” said prosecutor’s office.

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Recall that for the first time NYAG filed a complaint against Bitfinex and Tether in April 2019, claiming that Bitfinex covered a loss of more than $ 850 million due to borrowing funds from Tether reserves.