New York Supreme Court Judge Joel M. Cohen has postponed issuing a decision on whether the Office of the New York Attorney General’s case against Bitfinex and Tether will stand.
Judge Cohen Requests More Time
As previously reported by Bitcoinist, Bitfinex and the New York Attorney General’s office has been enmeshed in a lengthy legal dispute over allegations that Bitfinex illegally conducted business activities in the state of New York. The matter was meant to move another step closer to resolution as both parties met before the New York Supreme Court today.
Rather than issue a decision, Judge Joel M. Cohen chose to delay making a decision, citing the need for more time to review the case. The NYAG had requested that Bitfinex and USDT stablecoin issuer Tether hand over documents pertaining to an alleged $850 million loan the exchange borrowed from Tether reserves to cover client losses.
The NYAG also alleges that Bitfinex violated the law by knowingly allowing users residing in the US to trade on its platform.
Bitfinex Plagued by Scandals
Last Friday, in somewhat of a blockbuster reveal, Bitfinex admitted that a U.S.-based customer had successfully found a workaround to the Bitfinex’s restrictions to trade on the platform. A statement from Bitfinex’s website explained that:
We have now identified this user. We correctly flagged this user’s IP address as being in the U.S. Notwithstanding the U.S. IP address — which may be used by Bitfinex customers, as appropriate — our system logs demonstrate that this user represented to us several times that he was not an individual resident in the U.S. This person has lied to Bitfinex on multiple occasions, deliberately and wrongly concealed his location, and flagrantly violated our terms of service.