New York court denies Bitfinex, Tether's lack of jurisdiction claim
Tue, 20 Aug 2019, 07:59 am UTC
The New York State Supreme Court ruled that it has jurisdiction to adjudicate the case between the New York Office of the Attorney General (NYAG) and iFinex, the owner of Bitfinex and Tether.
In the latest ruling dated August 19, New York Supreme Court Judge Joel M. Cohen said:
“The Court disagrees with the Petitioner that it is (or can be) premature for the Court to determine whether it has jurisdiction to issue orders impacting the rights of Respondents in this proceeding. That said, the Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter. Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”
Following the latest decision, the NYAG can now continue with its investigations and demand the company to submit the documents at the request of the agency. Furthermore, the company is given until October 14 to turn over the documents to NYAG.
In May, Bitfinex and Tether asked the court to dismiss the case entirely and put an immediate stay on the proceedings, arguing that the firms do not have any customers in New York. Oral arguments were heard last July 29, but Cohen postponed the decision, saying he needed more time to make a final ruling.
The news is a victory for NYAG after it submitted a letter earlier this month to argue why Bitfinex and Tether should not be granted a continuing stay of demands. It can be recalled that legal representatives of both companies claimed that they have spent more than $500,000 and tasked 60 lawyers to look for the documents the NYAG are asking for.
This legal saga started when NYAG alleged that Bitfinex lost $850 million and consequently used the funds from Tether to cover the loss.
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