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Bitfinex must face New York attorney general in fraud lawsuit, says judge

A New York judge ruled Bitfinex must face the fraud suit and impending investigation set against it in April by New York attorney general Letitia James, denying the company’s request for the case to be dismissed due to lack of jurisdiction, Bloomberg reported.


Justice Joel M. Cohen said Monday that iFinex Inc., the Hong Kong-based parent company of Bitfinex and Tether, will be tried for James’s allegations that it used $900 million worth of Tether USDT reserves to fraudulently cover an $850 million loss of “co-mingled client and corporate funds”.


Per Cohen’s ruling, the Attorney General will also have access to information blocked by a temporary hold won in court by iFinex in May.


Questions of jurisdiction resolved


The verdict comes as a moment of resolution in a months-long legal clash between Bitfinex and the Office of the New York Attorney General (OAG), who since launching an injunction in April has pursued the company under New York’s Martin Act.

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