New York Attorney General to Bitfinex and Tether: 'Delays Must Stop'

The New York Attorney General's office is losing patience with Bitfinex and Tether.

New York State Supreme Court Justice Joel M. Cohen scheduled the hearing for this Thursday, after receiving a request from the NYAG's office last week complaining that Bitfinex and Tether had yet to turn over any documents.

According to Castiglione, the NYAG is requesting all documents be submitted within 60 days and an injunction preventing Tether from loaning funds to Bitfinex be extended a further 90 days.

The case began in April 2019, when the Attorney General's office said Bitfinex had lost access to close to $1 billion in customer funds, and borrowed from Tether's reserves.

The NYAG won an injunction preventing Tether from sending any more funds to Bitfinex, and Cohen ordered the firms to share all documentation about the deals, as well as documents about tether issuances, among other concerns.

The NYAG wants Bitfinex and Tether to produce purchase information for tether, U.S. dollar withdrawal requests, tax documents and account information within one week.

Within a month, the NYAG wants communications about Tether's loans, loans to third parties and a list of U.S. or New York customers who had funds on Crypto Capital, and within 60 days it wants "Full production" of information related to a November 2018 subpoena, a February 2019 letter and jurisdictional documents.

Bitfinex is arguing that a request for all documents about all tether transactions is overbroad. Michael likened it to "Asking GM for all documents about cars." The NYAG is also looking for documents outside its jurisdiction, he claimed.

He also noted that Bitfinex and Tether announced a ban on all New York customers nearly three years ago.

Castiglione, in contrast, wrote that an investigation into Tether and tether is proper, "Given their extensive ties to the state."