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New York Supreme Court Judge Authorized Bitfinex to Modify Preliminary Injunction

By Chris Torres | May 19, 2019
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New York Supreme Court Judge Authorized Bitfinex to Modify Preliminary Injunction

On May 16th, Joel Cohen – New York Supreme court judge – has authorized a motion for the crypto exchange Bitfinex, to modify the substance and temporal extent of the previously filed injunction by the N.Y Attorney General.

According to the announcement, Bitfinex, along with the affiliated stablecoin issuer Tether, are asked to carry on with their daily operations. It further clarified that the decisions from the preliminary hearing that the NYAG had would last for 90 days, and the NYAG will be in charge of any proposal to reevaluate the injunction.

“…the Court finds that the preliminary injunction should be tailored to address OAG’s legitimate law enforcement concerns while not unnecessarily interfering with Respondents’ legitimate business activities.” Judge Cohen further stated in the document.

Bitfinex has previously been accused of committing fraud, by borrowing a significant amount of loan from Tether to cover the huge financial damage. The NYAG has then issued a legal paper, demanding Bitfinex to publicize all documents, regarding the hundred-million-dollar funds lent to by Tether, reported by The Crypto Sight last week.

Although the motion will allow Bitfinex and Tether to conduct transactions as usual, it ordered them to provide any related documents that could help with the investigating process of the NYAG, and limit their access to the loan and line of credit of the USD reserve. The decision also prohibited Tether from financially aiding Bitfinex or any other companies, distributing its assets to employees or make any changes to the subpoenaed documents by the NYAG.

“This order is a victory in the ongoing defence of our business against the New York Attorney General’s office.” Bitfinex remarked regarding the announcement.

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