Court Judge Postpones The Decision Against Bitfinex Case

Court judge Joel M. Cohen has delayed the issuing of a decision on whether the Office of The New York Attorney General’s case against Tether and Bitfinex will continue to stand. Let’s find out more in the latest cryptocurrency news.

Bitfinex and the New York Attorney General’s office are in the middle of a lengthy dispute over allegations that the major crypto exchange illegally conducted business activities in the state of New York. The case was supposed to be closed earlier since both of the parties met in the New York Supreme Court previously. Rather than delivering a decision, Court Judge Joel M. Cohen chose to delay the decision citing there is more time needed to review this case. The NYAG requested that Bitfinex and the USDT issuer company Tether, hand over documents where it can be seen that they used an $850 million loan which the exchange borrowed from Tether’s reserves in order to cover client losses. The NYAG office states that Bitfinex also violated the law by knowingly allowing the users to reside in the United States in order to trade on its platform.

Last Friday, Bitfinex admitted that the US-based customer had found stability over Bitfinex’s restrictions to trade on the platform. A statement from the website explains:

‘’We have now identified this user. We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S. IP address — which may be used by Bitfinex customers, as appropriate — our system logs demonstrate that this user represented to us several times that he was not an individual resident in the U.S. This person has lied to Bitfinex on multiple occasions, deliberately and wrongly concealed his location, and flagrantly violated our terms of service.’’

Bitfinex and Tether are trying to get the case dismissed and the NYAG is looking for a release of the documents since they claim they are crucial to understanding how and why the $850 million loans was used. The Court Judge and his decision will likely prolong the current preliminary injunction in more than 90 days. Cohen stated as we can read in the best cryptocurrency news sites:

 “I will extend the injunction…if I dismiss the case then obviously the injunction goes with it. If I don’t dismiss the case the injunction will be extended.’’