Bitfinex: NYAG court filings written in bad faith & riddled with false assertions

26 Apr, 2019 | Updated: 26 Apr, 2019
by Fifi Arisandi
Bitfinex: NYAG court filings written in bad faith & riddled with false assertions

Bitfinex responds to the New York Attorney General's accusation of covering up an $850 million losses by printing Tether (USDT). 

Just hours after the New York Attorney General Letitia James announced a court order to iFinex Inc., the operator of cryptocurrency exchange Bitfinex and Tether Limited, the issuer of stablecoin, Tether (USDT), accusing them of covering up an $850 million loss by printing USDT, the accused exchange releases an official response.

“The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital,” says the announcement dated April 26th.

They claim the accusation to be completely misguided as they say, “We have been informed that these Crypto Capital amounts are not lost but have been, in fact, seized and safeguarded. We are and have been actively working to exercise our rights and remedies and get those funds released.”

Instead, Bitfinex “accuses” the NY Attorney General’s office of undermining the aforementioned efforts and harm their customers.

Moreover, they clearly state that “both Bitfinex and Tether are financially strong – fullstop”.

Moving forward, both allied companies commit to fight the NY Attorney General’s “gross overreach” against companies that are “good corporate citizens and strong supporters of law enforcement”.

“Bitfinex and Tether will vigorously challenge this, and any and all other actions, by the New York Attorney General’s office,” the final statement in the announcement wrote.

The market and social responses towards the news have been pretty harsh. Almost all the top 100 cryptos are in red, with only few exceptions, such as all stablecoins that are gaining.

CNBC Crypto Trader host, Ran Neuner said that how the market responds to the Bitfinex & Tether news confirm that "we are in a bull market".

Interestingly enough, he is sure that JP Morgan Coin has "something to do" with this, so sure that he's willing to bet on it. 

Interesting! How the case will develop and whether Neuner's opinion will be proven true, stick with Chepicap for more updates.

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