Bitcoin exchange platform Bitfinex has issued a court filing refuting claims by the New York Attorney General (NYAG) of servicing US customers in 2018.
Bitfinex Says Alleged US Customers are Foreign Entities
Earlier in July, the NYAG submitted evidence alleging that Bitfinex provided services to customers based in New York till December 2018, in violation of state law.
In response, Monday’s (July 22, 2019) court filing sees Bitfinex accusing the NYAG of misrepresenting the alleged connections to US customers.
— Alistair Milne (@alistairmilne) July 22, 2019
According to the filing, Stuart Hoegner, general counsel for Tether, revealed that the customers in question were foreign eligible contract participants (ECPs).
An excerpt from the filing reads:
OAG (Office of the Attorney General) tries to confuse matters by referring to isolated instances where Respondents’ foreign customers have shareholders or other personnel in New York. But in those circumstances, Respondents’ counterparties — the ones with which Respondents actually transacted business — are the foreign entities.
Hoegner also argued that the NYAG is attempting to pierce the corporate veil so as to present the ECPs as resident bitcoin traders in the U.S.
As reported by Bitcoinist, the NYAG is accusing Bitfinex of covering about $850 million in customer losses.
No Jurisdictional Leg to Stand On
Bitfinex is also challenging the broader jurisdictional authority of the NYAG in the case beyond the matter of servicing U.S. customers. The company’s lawyers say the court lacks both personal and subject matter jurisdiction over the case.