Tether and Bitfinex want 30 more days to prepare important documents for the trial
iFinex Inc needs 30 more days to prepare documents for its trial with the Attorney General of New York.
Tether and Bitfinex want 30 more days to prepare important trial documentsNOTES
iFinex Inc – the parent company of the Bitfinex crypto exchange and stablecoin Tether issuer (USDT) – wrote to the Supreme Court of New York requesting that the trial date be postponed further.
According to a case filed with the New York judicial system on January 19, iFinex Inc.’s attorney requested an additional 30 days to produce the documents required by the Office of the Attorney General (OAG).
The process of producing the document was to be completed by January 15 – a date that in itself was an extension of the original deadline of December 16. The defendant’s lawyer, Charles Michael, said in Tuesday’s case that a „substantial volume“ of material had already been handed over to the OAG, but there were still „agreed complementary items“ that needed to be obtained.
The defendant noted that in addition to the time needed to produce the documents in question, extra time would be needed for the OAG to analyse their importance. The deposit states:
„The parties will need a few more weeks to produce the additional information in order for the OAG to review production and discuss further whether any further procedures may be necessary“.
The ongoing legal battle dates back to April 2019, when the Attorney General of New York claimed that Bitfinex had tried to cover up the loss of $850 million in client funds by taking illegal loans from Tether, with which it shares executive leadership. The defendants also allegedly operated an illegal securities offering.
The NYAG investigation previously revealed that no more than 74% of Tether’s stablecoins were actually backed by real cash reserves. This has not prevented more than $24 billion in USDT from being issued so far, and stablecoin is still involved in the highest volume of spot trading in the cryptomino market on a daily basis.
Bitfinex technology director Paulo Ardoini recently accessed his Twitter account to remind observers that Tether was registered and regulated by the Financial Crimes Enforcement Network, and that any suggestion that USDT represented a bond was just an example of fear, doubt and uncertainty, or FUD.
Given Tether’s perceived influence in raising the price of Bitcoin (BTC), and the extent of its daily use by cryptomorph traders, many fear a negative outcome on behalf of iFinex Inc, though justified, could wreak havoc on the value of BTC and the rest of the cryptomorph market.