Bitfinex is in trouble again: New York State Attorney General's Office asks to disclose Tether transaction documents
According to Coindesk's May 4 report, the New York Prosecutor's Office has been questioning the compliance of the cryptocurrency exchange Bitfinex. Recently, it informed a local court that it believed that Bitfinex should be required to submit a summary of the nearly $900 million line of credit for the stable currency issuer Tether.
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On April 25, the New York Attorney General's Office (NYAG) sued the parties for the first time because Bitfinex and Tether conspired to use the USDT reserve to cover a $850 million loss. At the time, in the absence of immediate funding from Bitfinex, Tether provided it with a $625 million loan and an additional $900 million in line of credit to maintain operations.
This is another "confrontation" between NYAG and the legal dispute between Bitfinex and Tether's parent company iFinex.
In early April, NYAG accused Bitfinex of obtaining nearly $1 billion from Tether in the form of a loan without public consultation with Tether customers. iFinex claims that the two parties have reached an agreement in the "fair trade" through independent agents.
In the initial ban, NYAG stated that they did not want to block the operation of Bitfinex or Tether, but required Tether to stop providing any funds to Bitfinex. However, Bitfinex objected to this.
In the documents submitted on Saturday, NYAG officials pointed out that
Since the ban was issued, the Office of the Attorney General of New York has not restricted the normal operation of Bitfinex.
However, they further pointed out that the lawyers of Bitfinex and Tether "recognize" that the ban is legal under state law. They can revoke the order, but hope that the court "develops new regulations."
In addition, the document details how the company's $850 million third-party bank and payment service provider, Crypto Capital, is "sharing" with Bitfinex. Bitfinex insists that these funds have been confiscated by law enforcement officials.
It is worth noting that NYAG believes that the testimony between Bitfinex and Crypto Capital in interpreting their relationship is inconsistent, and as a reason why Bitfinex needs to clarify the details of the loan.