All you need to know about the USDT case with the New York Attorney General
Many interested in cryptocurrencies recently discussed the date and date of January 15, 2021, as an important date for the ongoing case between the New York Attorney General's office “NYAG” and “iFinex”, the parent company of Bitfinex and Tether.
Here's a comprehensive summary of what happened with the excitement and what to expect today, January 15th.
The case of the New York Attorney General “NYAG” v. “InFinix”: What happened?
In April 2019, the New York State Attorney's Office indicted the cryptocurrency exchange Bitfinex.
The charge from the New York Attorney General's office indicated that Bitfinex lost $ 850 million and to cover its deficit and loss it used funds from its stable currency, Tether (Tether is the company that issues USDT) to cover the shortfall.
In response to the lawsuit and accusation, Al-Tather issued a statement through a blog post in which it said that the allegations and charges were written in bad faith and filled with false assertions.
In May 2019, Judge Joel Cohen granted a partial trial at the request of the New York Attorney General’s Office “NYAG” to obtain documents from the two companies until the hearing on July 29 of the same year 2019.
During that session, the judge in the case decided to extend the initial injunction because he was not prepared to make a final decision on whether to proceed with the case or to reject it, as this judicial order extended 90 days.
In August 2019, the New York State Attorney's Office “NYAG” presented new evidence of the case, claiming that apart from the $ 850 million cover-up, Bitfinex and Tather have served New York clients for longer than they have stated.
The document stated at the time:
There are significant connections between Bitfinex, Tether and New York users.Bitfinex was available to New Yorkers, while providing them with the ability to buy and sell stable digital currencies.And there is a case of misinformation used by Bitfinex.
Not only was the New York Attorney General “NYAG” not satisfied with the aforementioned charges, but also attacked the initial offer of the LEO of “Bitfinex” claiming that it had all the evidence and indications of the issuance of securities subject to Martin's law, and there is reason to believe that the issuance is related to matters under investigation.
Document delivery order:
In September 2020, Judge Cohen decided that Bitfinex and Tether must hand over documents detailing their financial relationship and history to the New York State Attorney's Office, NYAG.
Additionally, the judge ordered an extension of a court order preventing Tather from loaning money to Bitfinex for another 90 days.
On December 9, 2020, Leticia James, the New York Attorney General, submitted a document requesting Judge Cohen to extend the deadline to January 15, 2021.
Why is today's date January 15 important for the Tether digital currency?
Today, January 15th is an important date that has made many crypto pioneers talk about it and about its potential impact on the stable digital currency USDT.
The reason for the importance of this day is that iFinex (the company iFinex that oversees Tether) has provided the necessary information to the New York Attorney's Office (NYAG) to continue its investigations and to deny its allegations.
Perhaps most important is the nature of the documents provided.
Basically, "iFinex" today has to provide documents explaining how to support the Tether currency and the currency's relationship with the "Bitfinex" platform, and what impact "USDT" and "Bitfinex" have on the price of Bitcoin.
As a reminder, USDT is one of the largest stable cryptocurrencies in the cryptocurrency market in terms of total market capitalization, as it ranks third directly behind Bitcoin and Ethereum.
We will continue to cover the story and its findings in future articles on Bitcoin Arabs.