Bitfinex and Tether Refuse to Give In, Appeal Against NY Supreme Court Verdict

The New York State Supreme Court on Monday turned down a plea by iFinex to dismiss the New York Attorney General (NYAG)’s lawsuit against its subsidiary Bitfinex. With that legal hurdle out of the way, the NYAG was allowed to resume its investigations into the shady business practices allegedly perpetrated by the cryptocurrency exchange. As for iFinex, the company was made legally obliged to cooperate in the investigation, which among other outcomes, also meant that Bitfinex was required handing over all documents that the investigating authority deemed relevant. The ruling also applied to Tether Limited, the parent company behind the USD-pegged stablecoin, Tether. Tether Limited is accused of colluding with Bitfinex to cover up an $850 million loss while misleading investors in the state of New York.

Short-lived Victory

However, as it turns out, both respondents reacted rather quickly and filed an appeal that reads:

PLEASE TAKE NOTICE that respondents iFinex Inc., BFXNA Inc., BFXWW Inc., Tether Holdings Limited, Tether Operations Limited, Tether Limited, and Tether International Limited (collectively, the “Respondents”) hereby appeal to the Supreme Court of the State of New York, Appellate Division, First Department, from so much of the Decision and Order on Motion, duly entered by the Clerk of the Court, New York County, on August 19, 2019.

iFinex had previously approached the court to halt the NYAG investigation on the grounds that the latter had no jurisdiction to pursue the matter. In response, the NYAG argued that it was too early for the court to pass judgment on the question of jurisdiction — especially considering the investigations were still ongoing. The court dismissed the NYAG’s argument saying that it can adjudicate the matter. However, it also quashed the appeal by iFinex saying that Attorney General Letitia James was free to continue the investigations. The verdict stated:

[….] the Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter. Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.

Bitcoin Remains Unaffected by the Bitfinex Verdict

Bitcoin has surged nearly 12% over the past five days, adding a further $1,000+ to its valuation. At press time, it was priced at in the $10,600 – $10,700 range. That’s not to mention that the asset is having a fantastic bull run overall. The next significant resistance level is $10,800, which also happens to be the moving average line over the last 50 days. In all likelihood, if the bulls overrun this resistance level, the next path of resistance is expected around the $11,000 – $11,200 mark. Meanwhile, feel free to share your thoughts on this new chain of events in the ongoing legal tussle between the NYAG and Bitfinex-Tether. Buy and trade cryptocurrencies with a 100x multiplier on our partner exchange, StormGain.

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