Bitfinex and Tether Limited have been in a court battle with the New York Attorney General’s Office since April. Allegedly, Bitfinex lost access to USD850 million of funds when Crypto Capital was raided by the government for money laundering. Due to banking issues, Bitfinex and Tether Limited had been using Crypto Capital as a pseudo-bank. Following the seizure of USD 850 million Bitfinex allegedly took the money out of Tether’s reserves and opened a USD 900 million line of credit to fill the gap.
The most recent news is that Bitfinex and Tether Limited do not have to produce documents pertaining to the loss of the USD 850 million nor OF the USD 900 million line of credit until a stay granted this summer expires in early November. This can be seen as a minor victory for Bitfinex and Tether Limited, although when the stay expires in about a month, the documents might have to be produced.
On the flip side of the coin, a 90-day injunction preventing Tether Limited from loaning any more funds to Bitfinex has also been issued, which can be seen as a minor win for the New York Attorney General’s Office.
It will be important to follow this case once the stay expires in November since any actions taken against Bitfinex and Tether Limited could have significant impacts on the crypto market.
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