The NYAG who started the case against Bitfinex and Tether a couple of months back has taken a relentless approach. The court dismissed the previous case. However, the NYAG accused Bitfinex of secretly serving US clients.
The Exchange lawyers responded by saying that the particular cases that the AG is imposing on them are actually ‘isolated instances’ over which the company rarely has a control. His Counsel which included Steptoe & Johnson LLP and Morgan, Lewis & Bockius LLP wrote:
OAG 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.”
Bitfinex Vs. Crypto Media
Reportedly, Frank Chapprano from The Block recently accused Bitfinex of too easily allowing US customers to bypass bans. An instance was cited from 7th July 2019, where a US resident was able to access the platform to execute orders without hinderances.
Apparently, all it takes is an answer to a pop-up window with a YES or a NO to overcome restrictions. Eventually, the Exchange requires for KYC documents. However, in this case, the user was successfully able to deposit and withdraw despite the ban. He even left a note to shame the site,
I am a NY resident
The news started spreading rather quickly – here is the report. Nevertheless, the Exchange’s response, which was included noted that the user was an isolated incident. The Exchange said in a blog post,
We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S.