New York Attorney General Says Bitfinex, Tether Could Complete Loan Document Handover in ‘Weeks’


The New York Attorney General (NYAG) anticipates the handover of loan documents relating to an alleged $850 million cover-up will be completed in “the coming weeks.”

In a letter filed with the New York Supreme Court on Wednesday, the NYAG said stablecoin issuer Tether and cryptocurrency exchange Bitfinex had been cooperating with its inquiry.

The NYAG also noted the timeline for documents to be handed over would come after a deadline, previously mediated by the court, that once again ordered the crypto companies to hand over documents outlining their financial relationship.

As such, the NYAG seeks in the letter to extend an injunction, which bars Tether from loaning Bitfinex any further funds, to Jan. 15, 2021. The date has previously been extended on multiple occasions and is again expected to expire this week before the documents are provided.

The NYAG has alleged that Bitfinex attempted to cover up the loss of $850 million in funds held on behalf of customers via payment processor Crypto Capital, and that it secretly borrowed the shortfall from sister firm Tether’s reserves. Tether issues the USDT stablecoin, which now has a market capitalization of close to $20 billion, according to markets data site CoinGecko.

Counsel for the crypto companies previously argued the document production order was too broad. The NYAG’s office argued otherwise claiming Bitfinex’s attempts to delay the then 17-month-old order “must stop.”

The operators of Crypto Capital were indicted in 2019, including ex-Minnesota Vikings owner Reginald Fowler, accused of stashing funds over a global network of accounts at 56 different banks.

Bitfinex has filed for multiple subpoenas in an attempt to recover the nearly $1 billion it lost.



Source link

Latest articles

Jack Dorsey’s Square has ‘no plans’ to purchase more Bitcoin ‘at this point’

Digital payments company Square, led by Twitter CEO Jack Dorsey, decided to hit the brakes—at least for the time being—on Bitcoin...

Bitfinex hacker will need 114 years to launder $7 billion worth of stolen Bitcoin

Only 4% of nearly 120,000 Bitcoin (around $7 billion today) stolen by a hacker from crypto exchange Bitfinex in 2016 have...

This firm turned an old power plant into Bitcoin farm—and mined $60 million in a year

Over the past few years, private equity firm Atlas Holdings has created arguably the most ambitious and self-sufficient Bitcoin mining facility...

Mark Cuban reaffirms Bitcoin plans after Tesla snub sparks concerns

Billionaire ‘Shark Tank’ star Mark Cuban said today that Dallas Mavericks, the Cuban-owned NBA basketball team, will continue to accept Bitcoin...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here