Bitfinex and Tether have spent half a million dollars just on finding documents for the New York Attorney General’s (NYAG) office, a new letter by its lawyers says.
In the letter filed with the New York Supreme Court Tuesday, attorneys Jason Weinstein and Charles Michael of Steptoe and Johnson LLP, and David Miller and Zoe Phillips of Morgan, Lewis and Blockius LLP, urged Judge Joel M. Cohen to rule against immediately compelling the crypto exchange and stablecoin issuer to produce all the documents the NYAG demanded.
Cohen previously ruled that Bitfinex and Tether would need to preserve and turn over a subset of those documents, staying the rest of the NYAG’s injunction.
“The Respondents have already spent well over $500,000 responding to just those portions of the document demands that were carved out from the stay,” the letter says. “The companies and their personnel use more than 10 different communications platforms – several of which are encrypted and pose substantial collection and review challenges.”
It goes on to add:
“As a result, the process of responding to the carve-out from the stay involved one of the largest, most complex document collection and review effort in which undersigned counsel have ever participated, involving over 60 lawyers.”
The parties argued in court on Monday, with Bitfinex and Tether claiming that the NYAG’s office did not have the jurisdiction to compel the production of documents about a loan Tether made to Bitfinex, while the state’s attorneys claimed that the documents were necessary for them to continue their investigation.
Cohen did not make a ruling, though he promised to make one “promptly” at the end of proceedings.