Bitfinex and Tether Respond to Court Ruling

In a game of legal cat and mouse, Bitfinex and Tether have issued their reactions to Judge Joel Cohen’s verdict regarding the New York Attorney General’s (NYAG) allegations. The good judge was not swayed by Bitfinex’s fervent attempts to dismiss the case—claiming it lacked jurisdiction—thus allowing the NYAG to continue its crusade under the Martin Act. The drama unfolds!

The Blogosphere’s Buzz

On August 20, Bitfinex took to its blog and Tether echoed the same sentiments on its platform, declaring the NYAG’s claims as purely frivolous. They announced their intention to wage a battle in appeals court, promising a showdown that could rival any courtroom drama. Spoiler alert: They believe their case has merit.

The NYAG’s Allegations: Drama Worthy of Hollywood

In April, the NYAG filed allegations against iFinex, Bitfinex, and Tether, claiming they orchestrated a grand scheme to defraud investors by concealing a staggering $850 million loss on the Bitfinex trading platform. Attorney General Letitia James pulled no punches, stating:

“Our investigation has determined that the operators of the ‘Bitfinex’ trading platform, who also control the ‘Tether’ virtual currency, have engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.”

Jurisdiction: The Elephant in the Room

The question of jurisdiction plays a pivotal role in legal battles, as seen in an unrelated yet equally compelling case. Across the pond, Justice of the High Court of England and Wales, Matthew Nicklin, dismissed a libel suit brought by Craig Wright, who claims to be the legendary Satoshi Nakamoto. Wright’s suit against Bitcoin Cash champion Roger Ver was thrown out due to lack of jurisdiction, emphasizing how jurisdiction can make or break a case. Justice Nicklin articulated this succinctly:

“The evidence clearly demonstrates that the most substantial publication of the statements complained of is in the U.S. It is common ground that, of the global publication, only some 7% took place in England and Wales.”

What’s Next for Bitfinex and Tether?

As both companies gear up for their appeals, the cryptocurrency world watches with bated breath. Will they manage to shine a light on their side of the story? Or will the NYAG’s allegations prove too heavy a burden to bear? Stay tuned—this legal saga is far from over, and the stakes are higher than a crypto-bubble on a good day.