The NYAG [New York Attorney General] named ‘Letitia James’ has ‘requested‘ the disclosure of official documents regarding an alleged deal between renowned cryptocurrency exchange ‘Bitfinex’ and stablecoin operator ‘Tether’ [USDT] recently on 3rd May.
The ‘memorandum of law‘ implies for additional transparency and claims “that Bitfinex and Tether misled their purchasers as well as their investors.” The statement conjointly explains why the office of the prosecutor General feels the requirement to request aforementioned documents:
“While that along with other discrepancies don’t change the core problems within this case […] they solely heighten the OAG’s [Office of the Attorney General’s] ought to acquire documents and info in a timely, organized fashion so that the OAG could perceive what has taken place, and what continues to take place, at these firms.”
The document conjointly notes that the authorities have “crafted a slim injunction to preserve the established order and forestall Respondents from further dissipating the money reserves that purportedly back the tether virtual currency, pending completion of the OAG’s investigation.”
The NYAG also added that the ongoing case has not prevented Bitfinex and Tether [USDT] from continuing “to operate their businesses within the normal course, as they have continued to do since the injunction.”
As ‘reported‘ earlier in April, the NYAG alleged that Bitfinex exchange lost around $850 Mln and afterwards used funds from the affiliated firm Tether to cover the shortfall.
Also, Tether and Bitfinex ‘responded‘ the accusations with an announcement claiming that court filings by the New York Attorney General’s office were “riddled with false assertions.”
Just yesterday, Bitfinex shareholder ‘released‘ documents that confirm that the exchange is planning an over $1 Bln initial exchange offering of its new token, namely ‘LEO’.
Also earlier this week, an indictment of two people on multiple counts ‘published‘ an evident affiliation to the shadow banking services that were employed by crypto exchanges Bitfinex and ‘QuadrigaCX‘.