The cryptocurrency exchange Bitfinex and the Tether company must hand over to the New York Attorney General documents on mutual financial operations. CoinDesk reports on the state Supreme Court’s decision.
At the September 17 hearing, the defendants’ attorney tried to challenge the prosecutor’s demands. In response, the prosecutor’s representative noted that since the start of the case Bitfinex had not provided even a minimal set of documents.
The judge Joel Cohen ordered the defendants to provide financial statements to the supervisory authority. He also extended the injunction on Bitfinex transferring funds by Tether for another 90 days. The deadline for compliance with the documentation order should be set by a special master.
Earlier, prosecutors accuse Bitfinex of attempting to conceal a loss of $850 million using Tether reserves. The exchange denies the charges.
In May 2019, the New York Supreme Court ordered Bitfinex to provide documents relating to the loss of access to fiat funds. The company attempted to challenge this decision but failed at the appellate level.
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