Arguments that Bitfinex and Tether served New York residents through 2018 are misleading, new legal filings by the companies claim.
A new affirmation by Bitfinex and Tether general counsel Stuart Hoegner says a previous filing by the New York Attorney General’s office claiming that New York residents used the companies’ platforms for far longer than previously stated “contain a number of inaccurate and misleading assertions.”
According to Hoegner, some documents presented as evidence by the NYAG which appear to outline how New York residents could trade on Bitfinex “make clear that we would only do business with a foreign entity having no presence in New York,” while other documents describing Bitfinex customers based out of New York were actually about “foreign ECPs [eligible contract participants].”
These foreign ECPs, according to Hoegner, include former Fortress partner Mike Novogratz’s Galaxy Digital, which has an address listed in New York City.
Other traders listed as being New York residents were nonetheless “foreign ECPs,” Hoegner claims.
Moreover, Bitfinex ceased serving New York residents in January 2017 and all U.S. residents in August that same year. All U.S.-based entities and corporate customers were banned a year later, Hoegner claims.
A separate filing by Bitfinex and Tether’s attorneys argues that the New York Supreme Court should dismiss the case because the NYAG’s office did not serve papers to Bitfinex, Tether, or the other affiliated companies in time according to law; the companies “have not purposefully availed themselves of doing business in New York;” USDT is not a security or commodity as defined by the Martin Act; and the law the NYAG’s office is citing does not apply.