IFinex Inc – the parent cryptocurrency exchange Bitfinex and the issuer of stablecoins Tether (USDT) – wrote to the New York Supreme Court and asks to postpone the upcoming trial again.

According to a report sent to the New York City court system on January 19, the attorney asked iFinex Inc for an additional 30 days to submit the required documents from the Attorney General’s Office (OAG).

The paperwork was to be completed by January 15th, a date that was itself an extension of the original December 16th deadline. Defendant’s lawyer Charles Michael said in court and archived on Tuesday that a “substantial amount” of material has already been transferred to AGO, but there are “agreed additional provisions” that have not yet been introduced.

The archives indicated that, in addition to the time required to produce the relevant documents, additional time should also be devoted to the Office of the Auditor General to review their relevance. The view says this:

“It will take the parties several more weeks to obtain additional information for the OAG to review the proceedings and discuss with each other additional cases that may be required.
The ongoing litigation began in April 2019 when the New York Attorney General stated that Bitfinex tried to cover a $ 850 million loss in client funds by taking illegal loans from Tether, with whom they share senior management. The defendants reportedly made an illegal offering of securities.

A previously published NYAG poll showed that no more than 74% of Tether’s stablecoins are actually backed by real cash reserves. It hasn’t stopped at over $ 24 billion issued to date and the stable currency continues to participate in the largest spot trading volume in the cryptocurrency market on a daily basis.

Bitfinex CTO Paolo Arduini recently took to his Twitter account to remind observers that Tether is registered and regulated by the Financial Crime Network, and that any suggestion that USDT represented security was just an example of concern. Suspicion and uncertainty. , Or RD&D.

Given the perceived impact of Tether on the Bitcoin (BTC) price increase and the extent of daily use by cryptocurrency traders, many fear that a negative outcome on behalf of iFinex Inc, no matter how justified, could cause havoc in the value of BTC. and the rest of the cryptocurrency market.

Source: CoinTelegraph