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New York Supreme Court Judge Joel M. Cohen postponed the decision on the New York Attorney General (NYAG)’s jurisdiction over Bitfinex and Tether, as the court ruled to give a 90-day extension to the case.
Although this legal battle has been ongoing since April, the hearing last Monday focused more on whether the NYAG is authorized to investigate the companies. Cohen said he needed more time to make a final ruling on whether to entirely dismiss the NYAG case or to rule the other way and reject Bitfinex and Tether’s motion to dismiss.
The new ruling implies that the preliminary injunction filed on May will also be extended until a final decision is made. It could also mean that both Bitfinex and Tether can continue their normal business operations, but Tether still cannot lend funds to Bitfinex.
According to Cointelegraph, Bitfinex and Tether’s parent company iFinex reportedly argued that the court does not hold subject matter jurisdiction since Tether is not a security or commodity as it does not involve the futures market. Its lawyers also emphasized that the two companies have different business models and thus should not be treated as a single entity.
This is the latest update from the long-drawn-out battle between the NYAG and the two companies. Just last week, Bitfinex and Tether claimed that the previous filings of the NYAG, which alleged that the two firms continued to provide services for New York residents longer than previously stated, contained “a number of inaccurate and misleading assentation.”
It can be recalled that this issue all began in April after Bitfinex was accused of unlawfully engaging with stablecoin Tether to cover up an $850 million loss and requested to comply with pre-suit document and information under the city’s Martin Act.
