New York Attorney General’s office tired of compliance delays related to a 17-month production order from Bitfinex and Tether
Before a meeting between the regulator and the two cryptocurrency companies, John Castiglione, a senior consultant at NYAG, submitted a letter asking the two companies to comply with the order detailing financial information in the next 60 days.
“As of this deposit, Order 354 has been in effect for seventeen months. During that time, the defendants produced “jurisdictional” documents (as indicated by this Court), but were unable to provide the essential information required in the order. Delays must stop and respondents must be instructed to comply promptly “, Revealed Castiglione.
The council on the other side, however, argued that the Order was too broad and, for progress to be made, the scope had to be narrow.
This case between the regulator and the two companies (Bitfinex and Tether) has been very long. It all started in April last year, after the AG office claimed that Bitfinex had lost access to nearly $ 1 billion in customer funds.
Joel Cohen, a New York State Supreme Court judge, scheduled the hearing between the two parties on Thursday, the 17th. This was followed by a request from the NYAG office last week that the office complained that neither Bitfinex and Tether have not submitted any documents.
Castiglione says NYAG requires that all relevant documents be submitted within two months. The NYAG office is also trying to extend a court order preventing Tether from lending funds to Bitfinex for three months.
Charles Michael, the lawyer representing Bitfinex, explains in a letter that he disagrees with the extension of the injunction.
“The supposedly hidden facts were released 17 months ago, during which time consumers were free to redeem their tether without restrictions. Instead, they chose to buy, with Tether’s market capitalization growing six times (to more than $ 14 billion).“
According to Michael, Tether’s growth in market capitalization shows the market’s confidence in the dollar-linked cryptocurrency. This denies the justification for extending the court order.
“Consumers today are well protected and do not need OAG’s injunction. The loan transaction allegedly detracting from tether reserves was more than 25% of the tether’s backing at the time of the injunction, but thanks to Bitfinex’s repayments and due to the growth of the tether, the balance is now less than 4% of the tether support. teher“Said Michael in his letter.
The lawyer also added that the value of Tether’s assets exceeded the USDT issued value of $ 160 million.