New York Supreme Court (NYSC) judge Joel M. Cohen recently ruled to broaden the primary injunction in the New York Attorney General’s current case against crypto exchange platform Bitfinex and iFinex.
90 Day Extension
Judge Cohen allegedly granted the case an extension of 90 days. The additional time will give the Office of the Attorney General (OAG) more time to continue their investigation.
Attorneys for Tether, iFinex’s parent company, attempted to appeal the decision and have it dismissed, but Cohen denied their petition.
Lack of a Futures Market
The lawyers argued before the court and insisted that the body doesn’t have jurisdiction over the subject matter as Tether is not a commodity or a security, hence the lack of a futures market. The two companies’ defense team also claimed that they’re both distinct firms with separate business models and should not be treated as if they’re one entity.
The case against Bitfinex and iFinex started back in April when NYAG Letitia James claimed her office received a court filing that alleged that iFinex Inc. and its associates were a violation of the city’s law due to actions that might have resulted in New York-based investors being defrauded.
It was reported that Bitfinex reportedly lost $850 million in corporate and client funds and tried to hide the loss by secretly using $900 million of Tether’s reserved cash.
iFinex countered that the claims were false and said the missing $850 million is secured. It also filed for a dismissal of the case on the grounds that as Bitfinex was not operating in the city, New York’s Attorney General has no legal reasons to sue the company.