To start off this cryptocurrency week, the New York Supreme Court Judge Joel M. Cohen ruled that the Bitfinex exchange must provide all pertinent documents to the New York Attorney General (NYAG). Nevertheless, the parent company of the exchange, iFinex will more than likely appeal to this decision.
The judge’s preliminary injunction on the case was previously extended but iFinex has claimed that the NYAG lacked jurisdiction in that case and it strived to bar New York customers from using the service. It later turned out that the state’s residents were still able to gain access to Bitfinex, which is currently associated with the Tether stablecoin.
According to another recent court filing, the NYAG is allowed to continue the investigation since the court denied iFinex’s motion to put a stop to it.
“The Court disagrees with the Petitioner that it is (or can be) premature for the Court to determine whether it has jurisdiction to issue orders impacting the rights of Respondents in this proceeding.”
More than half a million dollars has been spent by iFinex already, mainly on its army of attorney’s which racks up the cost of court significantly
Rewind to early in the year, Bitfinex was accused of covering up its massive $850 million loss with the help of its funds. But the exchange was quick to deny the accusations of any wrongdoings. The whole market was left to deal with the backlash and suffered a meltdown because of it.
Despite the legal setback for the world’s biggest stablecoin, Bitcoin has remained uninterested and seems to be well on its way to hitting the $11k mark once more as it is currently priced at $10,774 following a 0.88 percent increase over the past 24 hours.
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!