The crypto community has been laser focused on the current dilemma between Bitfinex exchange and New York prosecutors over the alleged loss of $850 million of co-mingled customer and corporate funds. After the craziness last week, the New York Attorney General’s (NYAG) office has now demanded that Bitfinex must show transparency by turning over documents tied to the firm Tether.
NYAG Wants Bitfinex Disclose Tether Documents
News.Bitcoin.com recently reported on the NYAG court documents that accuse the cryptocurrency exchange Bitfinex of losing $850 million and using the stablecoin company Tether to cover the loss. The Bitfinex and Tether saga has continued into its second week with the NYAG office and the Attorney General Letitia James demanding Bitfinex release documents concerning the Tether situation. The recent filing explains that the NYAG office believes Bitfinex has had more than enough time to resolve the situation and the agency wants all relevant documents that explain how Tether played a part in this ordeal.
NYAG Memorandum sent on May 4.
“We’ve given you much latitude to resolve these situations and months beyond your original estimates, we need to have more transparency now,” the NYAG filing detailed. “While that and other discrepancies do not change the core issues in this case — that Bitfinex and Tether misled their clients and investors — they only heighten the OAG’s need to obtain documents and information in a timely, organized fashion so that the OAG may understand what has taken place, and what continues to take place, at these companies.”
After the NYAG filing, Bitfinex responded by explaining that the preliminary injunction filed last week cannot be justified and the NYAG office will “not succeed on the merits.” Moreover,