Bitfinex Can Keep Documents Related to $850 Million Alleged Cover-Up, Rules New York Supreme Court

New York Attorney General’s office can no longer ask the Bitfinex trading platform to provide documents that are a cover-up of $850 million loss company faced on its platform.

On 24th September, appellate court justices David Friedman, Troy Webber, Peter Tom, Ellen Gesmer and Jeffrey Oing, came forward to put a stay order. As per the stay order, Bitfinex can now keep the documents of loss to itself and the court cannot ask the exchange to present these documents.

The case was registered in April when the New York Attorney General’s Office (NYAG) filed a complaint against Tether. The company was accused of fraud against New York investors, as the company allegedly covered-up the loss of $850 million on the Bitfinex trading platform.

At that time, Attorney General Letitia James was quoted saying,

“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million dollars of the co-mingled client and corporate funds.”

The attorney general also revealed that the court had obtained a filing that proves that the company is violating New York laws and hiding the loss from its investors.

According to the claims, Tether was accused of engaging in a series of corporate transactions. $900 million of Tether’s cash reserves was transferred to the Bitfinex fund, which might later be used by the company to hide the losses it suffered in its trading exchange.

However, now with this new order by Appellate Division of the New York Supreme Court, the court might not be able to complete this investigation efficiently. If you are a concerned investor, you’ll have to wait till the time the court gets access to all the documents related to the loss.

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