Bitfinex faces New York allegations of losing $ 850M in copayment funds

A popular cryptocurrency trading platform, Bitfinex has to deal with the New York Attorney General's Office (NYAG) for allegedly hiding more than $ 800 million in customers and corporate money. The NY State Supreme Court Appeals Department overwritten the appeal on Thursday, after the company argued that tether (USDT) is not a security or traditional good.

Last year in April, prosecutors in New York alleged that Bitfinex lost $ 850 million from its customers and corporate partners. The charges stem from allegations from NYAG and New York Attorney General Letitia James.

The case was recently heard by the Court of Appeals of the Supreme Court of NY State and the company tried to declare that tether (USDT) is not a commodity or a security. Basically, if tether is not a commodity or security, the court and NYAG will not have jurisdiction over the companies involved.

In addition, Bitfinex tried to argue that because the company is not a US-based company, NY jurisdiction will not apply. Basically, when news.Bitcoin.com reported on this topic in May 2019, NYAG asked Bitfinex to show transparency by passing through documents attached to the company Tether.

With arguments about jurisdiction used in the appeal court, Bitfinex stated that NY officials have no authority over the documents. However, since the appeals court rejected requests to argue against jurisdiction, Bitfinex now has to respond to charges stemming from New York state.

The trial court correctly rejected the efforts of the respondents to restrict the petitioners who have legal authority to protect New Yorkers, the latest judgment notes.

In an email to the financial column, Jaspreet Kalra, Bitfinex's General Counsel Stuart Hoegner said: We will respect the orders of the court. We have no further comment on this at this time.

New York Attorney General Letitia James was delighted with the decision against Bitfinex. The decision of today takes effect from the office

Even virtual money is not above the law. We are satisfied with the court's decision, and will continue to protect the interests of investors in the market, she added. Bitfinex, the parent company Ifinex and Tether Limited are also involved in another ongoing lawsuit.