New York attorneys are losing patience with …

New York attorneys are losing patience with …

New York attorneys lose patience with 17-month delay in Bitfinex and Tether case

John Castiglione, senior law enforcement attorney for NYC Attorney’s Office, filed an appeal with a judge on Monday over the ongoing litigation with Bitfinex and Tether. Castiglione says crypto companies have refused to comply with the financial information requirement for 17 months. Defendants call the request too broad and request that it be narrowed down.

“At the time of filing this application, order 354 is in effect for 17 months. Then the defendants provided “jurisdictional” documents, but did not provide the key information that was specified in the order. The delays must end and the defendants must be ordered to comply with the orders properly, ”Castiglione writes..

The court has set a meeting for the two sides this Thursday after prosecutors complained last week about defendants not following orders. Castiglione requires the transfer of all necessary documents within 60 days and for 90 days to extend the restriction on Bitfinex loans from Tether reserves.

Bitfinex notes that for all 17 months, clients could easily withdraw assets from Tether, but they preferred to buy stablecoin, as a result of which its capitalization increased six times. According to lawyers, this fact underlines the confidence of the market in the company and should serve as the basis for the removal of further restrictions..

New York attorneys are losing patience with ...

“Consumers are now well protected and do not need the restrictions of the prosecutor’s office. At the time of the restrictions, the loan was more than 25% of Tether’s collateral, but thanks to Bitfinex payments and the growth of Tether, it was reduced to less than 4%, ”the company said, adding that Tether’s assets exceed its own stablecoin issue by $ 160 million.

In the latest appeal, the prosecutor’s office explains that within a week it needs information about the purchase of Tether, requests to withdraw dollars, tax and financial statements. A month is allotted for the companies to provide details of the lending negotiations and a list of all New York clients whose money was in the accounts of Crypto Capital. Crypto Capital’s problems initially caused Bitfinex to lose $ 850 million and was investigated by prosecutors. Within 60 days, defendants must submit a complete set of documents in accordance with previous requests.

New York attorneys are losing patience with ...

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