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World-renowned crypto exchange Bitfinex has said they will appeal against the New York attorney generals (NYAG) decision to make the company hand over documents in relation to iFinex the owner of both Tether and Bitfinex.  

The NYAG has been stepping up its investigations into crypto-related companies due to fraud and other illicit activities. The outfit has head offices based in Hong Kong and the British Virgin Islands say that the NYAG has no jurisdiction over them, but the New York supreme court ruled against them this afternoon. Bitfinex commented:

“Any assertion that we have misled our customers about Tether (USDt), its backing, or about the negotiated transaction between Bitfinex and Tether is false. We remain committed, as ever, to protecting our customers, our business, and our community against the Attorney General’s meritless claims,” Bitfinex said in a statement.

It has been said that the New York attorney general wants answers specifically after Bitfinex was accused of using USD 700 million from Tether reserves to cover up losses of USD 850 million. I must stress that these claims have not been proven. Bitfinex said the money was moved to a Panamanian-company called Crypto Capital but then was seized and safeguarded in several jurisdictions, including Poland, Portugal, the UK, and the United States, all through no fault of Bitfinex. Anyway, the case continues so keep a close eye on the newswires as there is more to come from this fascinating story.