Bitfinex Winning In Court As No Evidence Is Needed In Tether FiascoSeptember 25, 2019
As was revealed earlier today, the Bitfinex platform has just won a ‘stay’ in the New York Supreme Court. This motion would mean that the firm doesn’t, and may never have to produce documents showing evidence of what it did with the $900 million of Tether (USDT).
As a little bit of backstory for those unaware of the situation, based in Hong Kong, the platform’s problems started in April after it was indicted by New York Attorney General (AG) Leticia James. As well as the platform’s relationship with Tether, initially, the indictment was in regards to the inter use and ‘commingling’ of funds with investor money.
As reported by Be in Crypto though, “the company has yet to receive an official complaint from New York. In light of the lack of complaint, the judge for the case ordered that the company no longer need to share documents with the state prosecutors.”
The stay for Bitfinex means that no more information is required to be shared by either Bitfinex or its parent corporation, iFinex. This will more than likely bring the investigation to an instant halt due to a motion to dismiss the case in August which was eventually denied.
As the continues into the courtroom, the future for the platform remains unknown.
Even so, it doesn’t particularly matter as the industry has lost all faith in Bitfinex after this fiasco.
Before this situation, the platform was trading more than 100,000 BTC a day. Since the prosecution, that number has fallen to just 3,000 BTC a day leaving it with a loss of 97%.
In other Bitfinex news, the platform announced earlier this week that it’s Initial Exchange Offering (IEO) platform Tokinex is to reboot as Bitfinex token sales and will provide the token of P2P digital content and monetisation blockchain K.IM on 22nd October.
More news on this later in the week.
It will be interesting to see how this court fiasco plays out though. For more news on this and other crypto updates, keep it with CryptoDaily!
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