Bitfinex: Supreme Court Ruling in "Victory"
The embattled exchange called the ruling "victory" and insinuates that the case will end up going nowhere. Bitterness has already admitted that as much as $ 850 million has been removed from its collectors while Tether Limited has publicly confessed to only partially backing the world's oldest stablecoin.
Under the order, Tether and Bitfine can continue business as usual, but Tether Limited may not make some loans to Bitfinex. Moreover, while the injunction has been modified, Bitfinex and Tether are called to cooperate with the investigation of their ability.
it is part of the reasons set forth on the record at a hearing on May 6, 2019 and as summarized herein. In a nutshell, the Court finds that Petitioner is entitled to the Order requiring Respondent to promptly produce evidence, but that the preliminary injunction contained in the Order should be modified. ”
NY court grants Bitfinex's motion to modify injunction: https: / /t.co/b8TY0QBvYs
— Bitfinex (@bitfinex) May 16, 2019
Tether-Bitfinex Credit Line Frozen
Judge Joel M. on the idea that Bitfinex secured a line of credit from Tether. Tether will not be allowed to loan any money to Bitfinex while the investigation is ongoing, and both companies need to provide information about that situation. While stipulating that New York does not provide the AG with carte blanche, the court does hold the AG's right to investigate under New York business law.
a targeted preliminary injunction preventing respondents from continuing to let dollars flow out of Tether's reserves via the type of extraordinary transaction that triggered the petitioner's concern. ”Moreover, while noting that Bitfinex denies the AG's characterization of its relationship with Tether, the order more or less refutes the notion that the government has no authority over such companies do business.
How the Mighty Could Fall
Bitfinex believes that the investigation is a dead end. The stance smacks of the "no collusion" mantra of Donald Trump and his supporters. The New York Attorney General's office has sought to proceed ex-US against us and in bad faith, notwithstanding our previous, historical, and voluntary co-operation with them. We will vigorously defend against any action by the New York Attorney General's office, and we remain committed to protecting our customers, our business, and our community against their meritless claims. ”
Tether's behavior is that investors were not aware of the unusual dealings. Whatever the outcome, Bitfinex and Tether both find themselves in the crosshairs of one of the least-friendly-to-crypto governments in the U.S. Despite Bitfinex's apparent confidence, the effect of this judgment amounts to a mild annoyance for the NY Attorney General.