Bitfinex no longer have to collect and submit documents during their appeal to the New York Supreme Court


In a massive case where the New York Attorney General (NYAG) is saying Bitfinex had lost access to USD 850 million in funds held by Crypto Capital Corporation, a payment processor whose operators were later indicted by the U.S. Department of Justice. Stablecoin issuer Tether then extended a line of credit and provided a loan to Bitfinex to cover the shortfall. 

The NYAG’s office requested access to the documents surrounding this deal. Now the Judge in the case, New York Supreme Court Justice Joel Cohen has confirmed Bitfinex do not have to provide the documents.

“OAG’s request to order Respondents to search for and collect all documents and information called for in the §354 Order is denied as inconsistent with the order of the First Department ‘stay[ing]enforcement of the [§354 Order] pending hearing and determination of the appeal.’”

However, a second request that is said to be an injunction preventing Tether from lending any further funds to Bitfinex is to be extended. The respondents did not oppose this request.

“The injunction is hereby extended pending the hearing and determination of the appeal and, if OAG prevails on that appeal, for 90 days thereafter,” 

“The procedure for OAG to seek further extension of the injunction remains as set forth in the Court’s May 16 Order.”

In a statement sent to CoinDesk, The Bitfinex and Tether general counsel Stuart Hoegner stated: 

“We are pleased by Judge Cohen’s decision of Oct. 9th. A stay is a stay. We have consistently complied with the court’s orders in this matter, and we will continue to do so. We continue to look forward to addressing these important issues before the appellate court.”

The case continues…..

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