New York State Attorney General Letitia James’ case against stablecoin issuer Tether and its sister company, cryptocurrency exchange Bitfinex got a few months longer today.
Judge Joel Cohen orders New York Attorney General Letitia James to prove jurisdiction over Bitfinex and Tether
The New York State Supreme Court may throw out the charges if no New Yorkers were harmed
A court on May 22 ordered New York State Attorney General Letitia James to prove her office has the right to sue Bitfinex and Tether for fraud and securities law violations.
Bitfinex tells court Tether invested part of dollar reserves in Bitcoin
The revelation came in an attempt to dismiss a fraud and securities law violation suit brought by New York State Attorney General Letitia James
The Tether stablecoin is backed in some part by bitcoins. David Miller, an attorney for Tether’s sister firm, cryptocurrency exchange Bitfinex, revealed in court last week that Tether has invested “a small amount” of the reserve dollars backing the tethers (USDt) in bitcoins (BTC). He added that the company had also invested in other undescribed assets.
Bitfinex and Tether’s claim of victory over New York Attorney General Letitia James rings hollow
Judge Joel Cohen’s ruling said claims of securities violations and possibly fraud have a likelihood of success
On May 16, New York State Supreme Court Judge Joel Cohen modified an injunction granted to James that froze the ability of stablecoin issuer Tether from loaning any more money to its sister company, cryptocurrency exchange Bitfinex. But, Tether’s ability to loan Bitfinex any more money also remains frozen, and all the judge did in limiting the order to 90 days is make the Attorney General’s office reapply for the injunction once a quarter if they want to keep investigating.