Bitfinex running out of time with NY Attorney General

Getting your Trinity Audio player ready...

Bitfinex might be running out of time in its legal battle with the New York Office of the Attorney General (NYAG). In a letter filed with the court on August 1, the NYAG argued the owner of iFinex and Tether should not be granted a continuing stay of demands.

Of course, Bitfinex is facing scrutiny from the NYAG for allegedly covering up a loss of hundreds of millions in funds, using Tether to print the money they needed to cover up the loss. The NYAG is going after them for the cover-up, claiming it presented harm to New York investors.

Up until now, Bitfinex had been lucky that the judge was being lenient on them. In May, they were granted a stay of document demands, allowing them to stretch out how long they could get all their paperwork together in this initial phase of the court’s processes. They we’re shy about why they wanted the stay either, publically noting they’d argue the New York court had no jurisdiction over them, citing a lack of U.S. customers, and they’d seek a dismissal of the NYAG’s case.

But the court’s patience has started to run out. Just recently, the judge threw out their claim that the case should be dismissed, giving the NYAG an additional 90 days to build their case against the exchange. That signaled to the world that Bitfinex couldn’t wriggle out of this case so easily.

As a reaction, Bitfinex has cried for public sympathy once again. It’s lawyers have pointed to half a million in investigative costs as they try to make their case to the court that Bitfinex was not guilty of the accusations the NYAG presents.

That plea has caused the NYAG to call bullshit. In this recent letter, they note that this is all within the procedure of the court. “Respondents have not shown irreparable harm absent an injunction,” they wrote. “There is nothing difficult, or costly, about producing that information.”

Clearly, both the judge and the NYAG are tired of Bitfinex’s games and want to get to the bottom of this story sooner than later. With Bitfinex’s ploy to dismiss the case having already failed, the pressure is on now for them to prove their innocence, or more likely, to face the full weight of the law.