Op Ed: A Summary of ?NYAG vs. Bitfinex/Tether
Sasha Hodder's original article for bitcoinmagazine.com reduced by 53%
In the latest on the ongoing legal dispute between the New York Attorney General, cryptocurrency exchange Bitfinex and stablecoin issuer Tether, the New York Supreme Court has modified an April 24, 2019, preliminary injunction and now Bitfinex is allowed to continue using the Tether reserves that were loaned to it to maintain its ordinary course of business, such as paying employees and consultants. On April 24, 2019, the Office of the Supreme Court of the State of New York, Commercial Division granted an order submitted by the Office of the Attorney General requiring Bitfinex/Tether to provide information under the Martin Act. The Court granted a preliminary injunction restricting Bitfinex/Tether from further violating the Martin Act including engaging in "Fraudulent, deceptive, or illegal acts," and "Employing any device, scheme, or artifice to defraud or obtain money or property by means of false pretense, representation, or promise." On May 16, 2019, the court modified the injunction.
The court found that the NYAG made a sufficient showing to meet the very high standards required for a preliminary injunction that would prevent Bitfinex/Tether from continuing to let dollars flow out of Tether's reserves while the investigation continues. The court revised the preliminary injunction to strike a balance between protecting the public and protecting Bitfinex/Tether from undue business restrictions. The court reworded the preliminary injunction so as not to restrain Bitfinex/Tether from ordinary business activities.
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Summarised crypto news.