iFinex Inc, the parent company of crypto-exchange Bitfinex and stablecoin issuer Tether has asked the New York Supreme Court to further delay the upcoming trial date.
Postponement of deadlines
Legal counsel for iFinex Inc is asking for a 30-day extension to submit the documents demanded by the Office of the Attorney General (OAG).
The last deadline of 15 January was not met, but this was also a postponement of the original deadline of 16 December.
Legal counsel Charles Michael, said in court on Tuesday that a substantial portion of the material had already been turned over to the OAG, but that there were additional agreed upon items that still needed to be procured.
Time for verification
It takes a lot of time to produce the documents, but extra time must also be set aside for the OAG so that they can verify the documents:
‚The parties still need a few weeks to produce the additional information, so that OAG can review the production and further discuss with each other whether further procedures are needed.‘
Almost two years in progress
The ongoing legal battle began in April 2019, when the New York Attorney General alleged that Bitfinex tried to cover the loss of $850 million in customer money by taking illegal loans from Tether. The defendants also allegedly committed an illegal offering of securities (securitisation).
The NYAG investigation showed that no more than 74% of Tether stablecoins are actually backed by real dollars. This did not prevent Tether from issuing USDT 24.7 billion. Trading volume yesterday was over USD 90 billion.
Beware of FUD
Chief Technology Officer of Bitfinex, Paulo Ardoini, recently shared a reminder on Twitter that Tether is registered and regulated under the Financial Crimes Enforcement Network, and that any suggestion that USDT represents an impact was just an example of Fear,Uncertainty and Doubt (FUD).
Nevertheless, USDT’s influence on the cryptocurrency market has been tremendous. The stablecoin has also helped drive up the bitcoin price and is used by thousands of traders every day. It is therefore feared that a negative ruling on behalf of iFinex Inc, however justified, could cause great damage to the crypto market.