Past few weeks, Bitfinex and Tether have been surrounding by a brimming controversy regarding an alleged cover-up of a massive loss. The scenario further gets interesting as the New York State Attorney General (NYAG) Letitia James requests cryptocurrency exchange Bitfinex and stablecoin operator Tether to disclose the documents concerning the alleged deal made between them.
The NYAG’s memorandum of law filed on May 3, calls for more transparency, claiming “that Bitfinex and Tether misled their clients and investors.” The statement further elaborates over why the Office of the State Attorney General is pushing for the said documents:
“While that and other discrepancies do not change the core issues in this case […] they only heighten the OAG’s [Office of the Attorney General’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.”
The document notes that the authorities have “craft[ed] a narrow injunction to preserve the status quo and prevent Respondents from further dissipating the cash reserves that supposedly back the tether virtual currency, pending completion of the OAG’s investigation.”
The NYAG went on to note that the ongoing case hasn’t prevented Bitfinex and Tether from continuing “to operate their businesses in the normal course, as they have continued to do since the injunction.”
As reported earlier, in late April, the NYAG alleged that Bitfinex is employing Tether funds in order to covertly cover the alleged $850 million loss. Following the accusations, both Tether and Bitfinex responded to NYAG’s court filings in a statement claiming that it as “riddled with false assertions.”
Just yesterday, a Bitfinex shareholder released documents that confirm the exchange’s plans to raise $1 billion in an initial exchange offering of its new token, LEO.
Read more:Crypto And Blockchain Weekly Wrap Up – 29 April 2019 – 5 May 2019
Image Source – Pixabay.com
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