Bitfinex And Tether Win Stay In $900 Million New York Supreme Court Case

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Cryptocurrency exchange Bitfinex has won a motion in the appellate division of the New York Supreme Court, which means it won’t have to turn over documents pertaining to its use of the cryptocurrency Tether until a future date, if at all.

Tether, a so-called stablecoin is supposed to be backed on a one-to-one basis by the U.S. dollar, however New York attorney general Letitia James in April accused the company behind Tether of essentially minting the cryptocurrency for Bitfinex to the tune of as much as $900 million.

If the stay had been rejected, Bitfinex parent company iFinex would have been required to continue turning over documents pertaining to Bitfinex and the Tether cryptocurrency. A court document dated today is being presented as a “victory,” by a person familiar with the case speaking on background, but it’s only a partial win.
The parent company of the Hong Kong-based cryptocurrency exchange was sued by New York attorney general James in April, following allegations that the company was given the line of credit from Tether Holdings Limited, the maker of the Tether cryptocurrency, a stablecoin widely used in the cryptocurrency space to enter and exit investments. Tether’s market cap is currently $4.11 billion, with a daily volume of $24 billion, according to CoinMarketCap.com.

Importantly, no official complaint has even been filed against Bitfinex or Tether as pertains to this motion. Rather, today’s motion means that the companies will not have to provide documents about their relationship to investigators until a decision on an appeal to dismiss the entire case has been reached. In August, Justice Joel M. Cohen declined a similar request sent on behalf of Tether.

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