New York Attorney General Says Bitfinex, Tether May Complete Loan Document Delivery In “Weeks”

The New York Attorney General (NYAG) predicts that the delivery of loan documents relating to an alleged $ 850 million cover-up will be completed in “the next few weeks.”

In a letter filed with the New York Supreme Court on Wednesday, the NYAG said stablecoin issuer Tether and cryptocurrency exchange Bitfinex had cooperated with its investigation.

The NYAG also noted that the deadline for handing over the documents would come after a deadline, previously negotiated by the court, which again ordered crypto companies to hand over documents describing their financial relationship.

Related: OKEx trading volumes and home reserve plunge on possible user exodus

As such, the NYAG seeks in the letter to extend an injunction, which prohibits Tether from lending additional funds to Bitfinex, until January 15, 2021. The date has already been extended several times and is expected to expire again. week before the documents are provided.

The NYAG alleged that Bitfinex attempted to cover the loss of $ 850 million in funds held on behalf of customers through payment processor Crypto Capital, and that it secretly borrowed the shortfall from sister company Tether’s reserves. . Tether issues the USDT stablecoin, which now has a market cap of nearly $ 20 billion, according to market data site CoinGecko.

The lawyer for the crypto companies has previously argued that the order for the production of documents is too broad. The NYAG office argued otherwise, saying Bitfinex’s attempts to delay the then 17-month-old order “must stop.”

See also: New York Supreme Court rejects Bitfinex’s claim of incompetence

Related: Aquaculture company completes Australia’s first capital raise using cryptocurrency

Crypto Capital operators were indicted in 2019, including former Minnesota Vikings owner Reginald Fowler, accused of hiding funds on a global network of accounts at 56 different banks.

Bitfinex has filed several subpoenas in an attempt to recover the billion dollars it has lost.

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