The New York Office of the Attorney General (NYAG) is in the latest cryptocurrency news for a new letter. The NYAG letter was submitted to the Justice Joel M. Cohen and argues that the cryptocurrency exchange Bitfinex and its affiliated stablecoin firm Tether should not be granted a continuing stay of demands.
Submitted on August 1, the NYAG letter is featured on many best cryptocurrency news sites. It is the latest chapter in the New York Attorney General’s ongoing case against Bitfinex, which is a parent company of iFinex and Tether. The state alleges a multimillion loss and a coverup which took place.
It all began when the court issued a stay of document demands in May – as a response to the defendants’ request. In other words, the court currently only requires the defendants to produce documents and information that is pertinent to the issue of whether or not New York is an appropriate jurisdiction for the NYAG letter complaint – as opposed to a wholesale disclosure of the complaint documentation.
The Bitfinex lawyers recently wrote that the exchange spent more than $500,000 responding to NYAG’s document requests and adding that they would appeal for a continued stay of demands even if a dismissal motion does not go through.
According to the defendants’ lawyers, the NYAG letter asserted that a full documentation would be particularly difficult, costly and unfair because of the resources that they already spent on the investigation. As the letter shows:
“Finally, a stay will serve the public interest, including by conserving judicial resources. And it will serve the interests of justice, as basic fairness dictates that the Respondents, who have been hauled into this forum against their will and have already incurred extraordinary expense to comply with portions of this § 354 Order to date, should not be made to suffer irreparable harm from being required to comply with that Order while seeking relief therefrom.”
Today, the NYAG said that the defendants have not sufficiently demonstrated an irreputable harm absent an injunction – that the facts pertaining to jurisdictions are not new and that it should be neither costly nor difficult to produce information that was previously subpoenad by the NYAG.
This NYAG letter is a continuation in an ongoing legal battle which began when the Attorney General LEtitia James alleged that Tether Limited, iFinex and their associated entities violated the New York law and defrauded NY-based crypto investors.
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