Bitfinex and Tether have faced another setback in the ongoing legal battle vs. New York Attorney General. The supreme court denied the request of iFinex to dismiss its case on the ground that the court does not have enough subject matter. The court ruled that the Attorney General can continue its investigation. After the ruling price of bitcoin climbed by 5%.
New York’s office of Attorney General alleged that cryptocurrency exchange Bitfinex lost $850 million and used stablecoin Tether to cover up that loss. AG has been asked iFinex to submit proper documents and whatever documents so far the exchange has produced were deemed unsatisfactory. Now the court has ruled in favor of the AG who still demands transparency from iFinex for the loss that they did not file.
In May the court ruled that AG’s investigation is too broad and vague and needed to be narrowed. The court said that the injunction would expire on 14th October. This gives Bitfinex and Tether 90 more days to turn over documents and to comply with AG’s investigation. Bitfinex appealed that the company has already spent $500,000 just to find the documents that they have already submitted.
Bitfinex and Tether both appealed the court’s ruling the next day. Most people from the crypto community have acknowledged the resistance shown by both the companies so far, but some allege that the companies have involved in wrongdoing and the court is on the right track.