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Bitfinex Wins Appeal to Stop Collecting All Documents in the $900 Million Tether Case

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The ongoing Bitfinex and Tether probe by New York’s Attorney General’s office, (NYAG) takes yet another turn as a New York judge rules against NYAG’s request for the defendants to search for and collect all documents and information on the $900 million USD loan made by Tether to Bitfinex.

New York Judge Rules in Favor of Bitfinex

In April, NYAG obtained an injunction from the New York Supreme Court for Tether and Bitfinex to produce all information and documents from an alleged loan between the companies. The NYAG office claims Bitfinex illegally obtained $850 million to cover up losses and a further $900 million in loans from Tether.

Earlier in the month, Bitfinex appealed the request to produce documents pertaining to the loan in the Supreme Court. On Thursday, a judge serving in the NY Supreme Court, Justice Joel Cohen, ruled in favor of Bitfinex, stating,

“OAG’s request to order Respondents to search for and collect all documents and information called for in the §354 Order is denied as inconsistent with the order of the First Department ‘stay[ing] enforcement of the [§354 Order] pending hearing and determination of the appeal.’”

In the past few hearings, the courts have shone a bright light on Tether and Bitfinex – a move that is frustrating the NYAG’s office, as recent statements show. The office released a press statement complaining on the courts frustrating its efforts to build its case against Bitfinex, Tether and a number of affiliate companies.

Injunction on Bitfinex-Tether Relationship Upheld

Despite a torrid time in the courts in the past few months, Justice Joel upheld the injunction on Tether not lending any more funds to Bitfinex. The judge wrote,

“The injunction is hereby extended pending the hearing and determination of the appeal and, if OAG prevails on that appeal, for 90 days thereafter.”

NYAG is liable to appeal for an extension of the injunction if they prevail in the set appeal. The judge report read,

“The procedure for OAG to seek further extension of the injunction remains as set forth in the Court’s May 16 Order.”

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