Categories: Bitcoin Business

Bitcoin Bulls Bask in Latest Legal Defeat for Bitfinex & Tether

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The New York Supreme Court ruled that the matter between the state’s Attorney General and Bitfinex parent company iFinex can continue. The bitcoin price rose 5 percent in response. | Source: Shutterstock; Edited by CCN

By CCN Markets: The bitcoin price moved higher on new legal developments in the ongoing wranglings involving Bitfinex and Tether.

On Monday, the New York Supreme Court ruled that the matter between the state’s Attorney General and iFinex can continue. It’s the parent company of the exchange Bitfinex. The ruling paves the path for the AG to continue its demands, which include forcing them to hand over documents.

They have until Oct. 14 to pony up.

Interestingly, in May, the New York Supreme Court ruled that the scope of the Attorney General’s investigation into Bitfinex and Tether was too broad and needed a time limit.

Bitfinex and Tether have cried they’ve spent an exorbitant amount of money and time trying to produce all the documents wanted. However, the court didn’t buy that this time around.

“The Court does not believe that is enough to warrant staying this case and further delaying or otherwise interfering with Petitioner’s investigation.”

Bitcoin buyers feast

Bitcoin buyers have come to understand that Bitfinex’s woes mean time to buy. The BTC price was higher by as much as 5 percent tonight on CoinMarketCap and Coinbase.

Last time FUD hit Bitfinex arbitrage ran #Bitcoin price from $5800 to $8500 wonder if it will happen again.

Bitfinex: You get what you deserve

At press time, neither Bitfinex nor Tether had released any statements concerning the ruling. However, there were plenty of statements going around on Twitter. People who’ve long thought that the pair were running some kind of scam took to social media to rejoice.

Many have had problems understanding how $850 million of the exchange’s customers’ money just disappeared. They’ve been equally unsatisfied with the companies’ failures to produce the necessary documents.

Still carrying on poorly

Bitfinex and Tether had requested a motion to dismiss the case, but that was denied.

As reported by CCN, Bitfinex in July said it was trying to stop U.S. bitcoin traders from accessing its platform. It didn’t try hard enough.

The court found that it had:

  • "allowed customers located in New York to transact on the Bitfinex trading platform after Jan. 30, 2017"
  • "knowingly permitted New York-based traders to use Bitfinex"
  • "agreed to loan tethers to a New York-based virtual currency trading firm as late as 2019"
  • "opened accounts and utilized services at New York-based banks"

This article is protected by copyright laws and is owned by CCN Markets.

If you can buy it, trade it, invest in it, or sell it, I write about it. For more than 20 years, I've covered all things finance. Based in Atlanta, Ga., I threw myself into covering the crypto space with a keen understanding that it would be an industry disruptor. I'm in constant search for the real Satoshi Nakamoto!

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Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

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