Lawyers Tether and the office of the attorney General of new York could not come to a consensus about what the company should be allowed to do with their assets, therefore, were forced to apply to the court to provide her with more opportunities to use their money.
The NYAG’s office wants to ban “any affiliate” to cover funds from the reserves of the Tether and requires a 90-day injunction.
On the other hand, lawyers Tether and iFinex, the parent company Bitfinex, want to get a 45 day restraining order for both companies.
Problems arose last month, when the NYAG has received a preliminary injunction, putting forward allegations that Bitfinex covered loss of $850 million, by borrowing funds from the reserve Tether.
The opposition to the NYAG against the Tether and Bitfinex continues
Judge of the Supreme court of the state of new York ordered both parties to clarify the order of the claims last week. In his letter to the court, the lawyers iFinex noted that, not abandoning its previous petition to cancel the decision NYAG, but agree to some changes in pre-trial ban.
The key moment for crypto currency exchange, apparently, is that she wants to be able to use reserve funds USDT a stable currency for investment purposes.
“If the Tether was just holding the proceeds in cash, the company would have earned the money needed to Finance their operations,” said lawyers for the Bitfinex.
At that time, lawyers from the office of the NYAG argued that the “bona fide owners of the stable token should have an appropriate reserve of funds to be able to redeem these tokens for cash because Tether for a long time is their in the market.”
Tether claims that NYAG there is no reason to restrict the ability of owners of stable coins “which are associated with the respondents”, including personnel of the Tether, to buy USDT, and that the actions of the NYAG constitute a “flagrant abuse of authority”, given that the prosecution, in fact, is not a regulator.
Judge Joel M. Cohen, who leads the case, probably, will appoint a preliminary hearing to reconcile the various proposals in the coming days, although it is not clear when this will happen.
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Tags: Bitfinex NYAG Tether