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Bitfinex angrily denies Attorney General’s accusations

Alleged $850 million loss of Tether wrong and AG acted “in bad faith” company says

Leading cryptocurrency exchange Bitfinex said New York’s Attorney General acted “in bad faith” by wrongly accusing it of having lost $851 million.

“Both Bitfinex and Tether are financially strong – full stop,” the company said in its statement,  adding that the Attorney General’s order to preserve and turn over documents was made without informing the company or asking for them.

The filings are also “riddled with false assertions, including as to a purported $850 million ‘loss’ at Crypto Capital,” the statement said. “On the contrary, we have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released”

It added: “Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office.”

The Attorney General “seems to be intent on undermining those efforts to the detriment of our customers, Bitfinex said.

The statement also accused the Attorney General of “gross overreach… [against] good corporate citizens and strong supporters of law enforcement.”

“Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office,” it said.

Leo Jakobson, Modern Consensus senior editor, is a New York-based journalist who has traveled the world writing about meeting and incentive travel, as well as the consumer and employee loyalty business. He also covered the East Coast side of the Internet boom and bust, small businesses, and New York City crime, nightlife, and politics. Disclosure: Jakobson owns no cryptocurrencies.

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