The petition of the cryptocurrency exchange Bitfinex about modifying the restraining order from the attorney General of new York (NYAG), was granted by judge Joel Cohen of the Supreme court of new York.
According to the report, the court ordered to allow Bitfinex and residing to affiliated operator stable Tether tokens to continue the normal conduct of business. The regulation also specifies that the duration of the initial injunction NYAG will expire after 90 days, and that any extension of liability will be imposed on the NYAG.
The court decision stated:
“The court finds that a preliminary injunction should be made taking account of the legitimate interests of the prosecution, but at the same time avoiding unnecessary interference in legitimate business activities of the defendants”.
A small victory in the confrontation between Bitfinex and NYAG
Initially, the NYAG argued that the Bitfinex team has lost $850 million, and then used the Tether to secretly cover the shortfall. Subsequently, Bitfinex has responded to the accusations, stating that they “were numerous misrepresentations and false statements”.
Although this decision will allow Bitfinex and Tether to continue its operations, it also requires them to provide information about the size of the loan and line of credit. The decision also prohibits Cohen Tether to provide any assets Bitfinex or other parties in a loan, distribute funds among the employees or change documents, the court granted NYAG.
In his statement Bitfinex expressed optimism about the decision, noting:
“This court ruling represents a victory in the ongoing protection of our business from the office of the attorney General of new York”.
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Tags: Bitfinex NYAG