A new court application indicates that the New York Attorney General has received most of the information he requested from stablecoin issuer Tether and iFinex, the parent company of crypto exchange Bitfinex.
The letter written by Steptoe partner Charles Michael explains this situation as follows:
“Participants have largely completed document production over the past few weeks and have produced a significant amount of material for the Attorney General’s Office (“ OAG ”), but there are agreed additional items to be completed. The parties will need a few more weeks to (i) generate complementary information, (ii) review the production of the OAG and (iii) further discuss among themselves whether further action is required. ”
Document production is part of the longstanding lawsuit between the two that started in April 2019. At the time, NYAG claimed that iFinex was pooling funds to cover a $ 850 million loss for Bitfinex between Bitfinex and Tether.
NYAG has forced iFinex to produce documents related to its research throughout the year 2020. Bitfinex and Tether have repeatedly emphasized that they did not agree during court proceedings, citing issues of jurisdiction, among other arguments, to avoid producing documents.
However, NYAG had this decision taken in court, and iFinex later took the appeal to the higher court in July. However, he also received a negative response from here. iFinex was then unable to submit the documents within the 60-day period set by the court and requested additional time for further processing.