A court in New York has rejected a petition from the New York Attorney General that would compel Bitfinex and Tether to submit all documents relating to the ongoing investigations into the firm during their appeal, CoinDesk reported.
In the latest developments in the high profile case, a judge in New York dismissed the attorney general’s argument that Bitfinex and Tether should collate and present all documents related to the alleged cover-up around the use of Tether reserves to bail out sister company Bitfinex.
The NYAG had asked the court to order the company to comply with its demands, despite protest from Bitfinex and Tether.
In rejecting the Attorney General’s requests, the judge said this was inconsistent with the court’s prior rulings.
OAG’s request to order Respondents to search for and collect all documents and information called for in the §354 Order is denied as inconsistent with the order of the First Department ‘stay[ing] enforcement of the [§354 Order] pending hearing and determination of the appeal.’
A second request for injunction was granted by the court unopposed, which would prevent Bitfinex from borrowing any more funds from Tether while the court process is ongoing.
The injunction is hereby extended pending the hearing and determination of the appeal and, if OAG prevails on that appeal, for 90 days thereafter. The procedure for OAG to seek further extension of the injunction remains as set forth in the Court’s May 16 Order.
Bitfinex and Tether general counsel Stuart Hoegner said the companies welcomed the ruling of the court, and suggested his clients were “looking forward” to addressing issues in front of the appellate court at the first available opportunity.
Hoegner told the news outlet, “A stay is a stay. We have consistently complied with the court’s orders in this matter, and we will continue to do so. We continue to look forward to addressing these important issues before the appellate court.”
The development is only the latest twist in the case, which first began with investigations back in April 2019.
The companies are accused of commingling funds intended as cash reserves for Tether, which the firm had promised investors was backed 1:1 by dollar assets.
The New York Attorney General has yet to comment on the latest developments.
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