Tether and Bitfinex will stand trial over the $850 million in lost funds after bitfinex lost an appeal before the Appellate Divisions of the Supreme Court of the State of New York and will face the state’s claims that they engaged in a scandal to hid the apparent loss of users’ funds. In the upcoming Tether news, we are reading further.
Tether and Bitfinex will stand trial as Bitfinex argued that the state had zero authority to pursue the case. The court also rejected the claims and affirmed the state’s jurisdiction. The company will have to disclose documents and testify before the NY court under oath. Tether has to face trial in a case regarding the loss of $850 million funds according to a NY State appeals court decision. Bitfinex is accused of engaging in a cover-up after losing $850 million and attempting to use funds from Tether to cover up the incident.
The case dates back in 2018 when the NY Attorney General started an investigation of several companies that were related to the two previous ones that Tether lacked “sufficient liquidity to permit customers to redeem tether at the represented value.” In 2010, after the Attorney General served the companies subpoenas seeking information about Tether’s operations, the company acknowledged it and produced the documents, revealing that the defendants hid information. Tether’s recent activities raised alarms indicating that iFinex was in huge financial trouble suggesting that USDT was not fully back. In 2019, the Supreme Court ordered iFinex to withhold from making claims on the US dollar reserves held by Tether.
iFinex responded in 2019 to dismiss the investigation saying that the authorities have no subject matter and personal jurisdiction. The company also noted that there are not based in New York and they don’t provide their services in the country so they should not be liable before the NY authorities. The Supreme Court however denied the motion to dismiss to which iFinex appealed. Finally, the state’s appellate court rejected Tether’s appeal on Thursday and confirmed the Attorney General’s jurisdiction over the case:
“The trial court properly rejected the attempts by respondents to limit petitioner’s lawful authority to protect New York residents.”
Bitfinex has no legal room left to play out. The company is facing serious charges and has no choice but to produce all documents requested by the Attorney General.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Stefan has been writing articles for DCForecasts since 2016 in-house full time. As one of our main cryptocurrency writers, he focuses on covering the latest cryptocurrency news, technical charts, price analyses of coins and press releases. When he is not exploring and covering the latest topics in crypto, you can find Stefan playing basketball, tennis or cycling.
DC Forecasts - Newsletter and get recent news directly to your inbox! Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
Daily Newsletter Bitcoin NewsAltcoin NewsLitecoin NewsEthereum NewsBlockchain NewsBitcoin ScamsRegulationExpert AnalysisPress ReleasesCardano NewsRipple NewsLibra NewsBitcoin Cash NewsTron NewsNexo NewsVechain NewsStellar NewsTezos NewsBinance Coin NewsCoinbase NewsChainLink NewsEOS NewsIOTA NewsTether NewsBitcoin SV NewsMonero NewsEthereum Classic NewsDash NewsUNUS NewsCosmos NewsMECX Token NewsNEO NewsDC Forecasts Announcements
DC Forecasts provides a comprehensive source of the latest news about cryptocurrency news daily. Read more on our about us page for details.