July finale? Bitfinex 850 million pending cases will welcome results

The three-month "tear" tug-of-war or the end of the game in late July, when Bitcoin may once again show huge fluctuations.

It’s almost three months, and Bitfinex and the New York Attorney General’s Office (NYAG) are still tit-for-tat.

In April, NYAG accused Bitfinex of misappropriating $850 million to cover losses and allegedly issuing illegal securities in New York State, and is a non-registered securities operator. At that time, Bitfinex quickly responded that $850 million was not lost but was temporarily blocked and protected, and NYAG’s allegations were unreasonable because the transaction was not operated in New York during the dispute. “NYAG’s court documents were maliciously written. , full of false assertions."

The two sides held each other's words and did not give each other. The battle situation was once deadlocked, but the war still did not stop. In early July, the Office of the Attorney General of New York submitted the latest evidence from the Bitfinex and Tether cases to prove that they have been serving customers in the New York area, just six months ago (December 18, 2018), and customers in New York. Log in to its trading platform, "Bitfinex is inextricably linked to New York." Earlier, NYAG stated that Bitfinex had violated New York law and deceived New York residents.

NYAG also pointed out: Respondents have repeatedly hired companies in New York to assist them in achieving their business goals, including a statement to the market about Bitfinex trading platform operations and Tether cash support; respondents in at least one virtual currency in New York in 2019 A trading account is opened in the trading company.

In response, Bitfinex responded by saying that the company's "New York customers" are actually foreign entities.

On July 23 (22:00 UTC), Stuart Hoegner, General Counsel of Bitfinex and Tether, submitted a new legal document stating that some documents provided by NYAG seem to outline how New York residents trade on Bitfinex, but in fact "we Only conduct business with foreign entities that do not have entities in New York."

Hoegner said that Bitfinex stopped serving New York residents in January 2017 and stopped serving all US residents in August of the same year. He added that all entities and corporate customers in the United States were banned after one year.

The case of "Bitfinex and the Office of the Attorney General of New York", which is still pending, is coming to an end in late July. The latest document is intended to support Bitfinex and Tether's motion to dismiss NYAG's allegations, but the hearing is scheduled for 7 Held on the 29th.

Dfund Zhao Dong once said that Bitfinex has always been a disaster, but it has always stood still. But from the hacking incident, the black swan incident of last year's reserve, to the alleged incident of $850 million this year, this time Bitfinex's "big test" will come. In addition, regardless of the outcome of the hearing or will affect the bitcoin market.

Bytes of the Bitfinex lying gun in the troubled autumn

As one of the world's largest cryptocurrency exchanges, every time Bitfinex encounters a black swan event, Bitcoin has almost fluctuated.

On April 26 this year, after the news of NYAG suing Bitfinex broke out, Bitcoin fell sharply. In just 30 minutes, the BTC price of Coinbase exchange dropped from 5,550 US dollars to the recent low of 4,950 US dollars, a drop of 10%. . The altcoin money followed the "coin king" and the USDT of some exchanges fell to $0.98.

Bitfinex responded quickly and repeatedly appeased the user. "We have been told that these encrypted assets have not been lost and have actually been blocked and protected." "The allegations of a loss of $850 million are absolutely wrong"…but Bitfinex The exchange’s funds are still fleeing wildly, and the exchange’s whales are moving frequently.

At the same time, within 48 hours of Bitfinex's shock, Bitcoin also experienced a thrilling 48 hours.

The upcoming hearing on July 29 may cause bitcoin to fluctuate again. If Bitfinex deceives investors and misappropriates the allegations, bitcoin can't escape a big fall.

In addition, at the end of July, Bitfinex will provide services to New York customers, whether it will be misappropriated with Tether, and its relationship with payment processing company Crypto Capital will be unraveled.

Event progress: Bitfinex 90-day ban is about to expire

When Bitfinex and the Office of the Attorney General of New York were deadlocked, the New York Supreme Court intervened in the case and announced its ruling on the Bitfinex incident on May 16.

The submission stated that Bitfinex and Tether can continue their normal business activities, but Tether must not lend its funds to Bitfinex or any other party except for normal business.

New York Supreme Court Justice Joel M. Cohen said:

“The court held that the preliminary injunction should apply to the resolution of the legality of the Office of the Attorney General of New York, but at the same time should not interfere with the legitimate business activities of the respondent if it is not necessary.”

According to the submission, the Banfinex ban will expire in 90 days. This shows that after 20 days, Bitfinex will usher in the day of lifting the ban.

Source: Shallot blockchain