Bitcoin, Crypto currency, Blockchain

Bitfinex and Tether to apply for dismissal of the lawsuit the New York attorney General

3069987d090c4b7882c2f0ae60aa13f9 - Bitfinex and Tether to apply for dismissal of the lawsuit the New York attorney General

Bitfinex and Tether to apply for dismissal of the lawsuit the New York attorney General

Home News Bitfinex and Tether to apply for dismissal of the lawsuit the New York attorney General

Of
Marcus Misiak –
22.05.2019

According to a court letter of 21. May have made the lawyers of Bitfinex and Tether a motion to dismiss against you in a pending lawsuit by the New York attorney General.

The lawyers of Bitfinex and Tether argue that the New York Supreme Court, the responsibility for the pending case and the alleged misconduct is reviewed by the Prosecutor’s office, is missing. In particular, the application highlights the fact that neither Tether nor Bitfinex in New York are active or targeted customers in the state’s care. In view of the apparent lack of jurisdiction, the lawyers noted that the office of the NYAG has taken Bitfinex and Tether for misconduct to the visor, although it had no direct impact on the existence of New York investors, especially in view of the fact that it is Bitfinex New Yorkers not allowed to register with the exchange.

Furthermore, the lawyer explains also write that the New was York Prosecutor’s office is not entitled to the “Martin Act”, since this governs the powers only for securities and Goods. This is according to the current circumstances, (a clarification of the SEC, to evaluate how crypto-currencies generally are securities or not securities are missing still) inappropriate.

The Backgrounds

Since 2017 Tether in relation to the cover Tether (USDT) to the U.S. Dollar in the crosshairs of the members of the cryptocurrency community and also the authorities. Historically, the company claimed to be behind the Stablecoin is always that each issued USDT-coin 1:1 with the US Dollar is covered, which would currently correspond to more than 2.9 billion dollars. At the beginning of March was discovered by the investigative members of the crypto Community, that Tether had been tacitly voided his claim to support any USDT with the US dollar.

This assumption was confirmed, as it became known, that Bitfinex had over 800 million dollars to Tether reserves to cover the losses of the platform. As a result, the New accused York Prosecutor Tether and Bitfinex, investors cheating, because the exchange used directly in assets that had been pledged to support the evaluation of USDT.

In addition, it was now known that Tether admitted in court, as The Block is reported to invest a portion of its reserves for Tether in Bitcoin:

In front of the 24. April has invested a Tether actually in instruments outside of cash and cash equivalents, including Bitcoin, bought Bitcoin.

Regardless of it stays in the current process to be seen how the New York Prosecutor’s office is positioned.

Tether volume is increasing again

According to data from CoinMarketCap, the market capitalization rose from Tether in the past month to more than 300 million, what fuels the rumor to the stock market even further. In addition, about 12 million USDT from the Tether of the Treasury in unknown Wallets have been moved to the Ether Scan

The funds were divided into two transactions, ~5 million USDT and ~6.7 million USDT, which have been sent from one Wallet to Wallet b1fa690155821bf9191d609593b556048aca517c. The sender has a balance of 42 million USDT.

Featured Image: Wit Olzewski | Shutterstock

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