Bitfinex, NYAG called to video conference with New York court

Digital currency exchange Bitfinex and the New York Attorney General’s office have been scheduled to hold a video conference with the New York Supreme Court in a week’s time. The two have been at loggerheads over the alleged $850 million Tether loan to Bitfinex.

New York AG Letitia James filed an order with the New York Supreme Court on September 8, asking the court to compel the digital currency exchange to turn over the requested documents. As CoinGeek reported, the AG requested the court to order Bitfinex to turn over the documents “no later than sixty (60) days from the date of the requested order.” James also requested an extension of an injunction barring Tether from lending any additional funds to Bitfinex or modifying any of the requested documents.

The AG’s request seeking a conference before the New York Supreme Court has now been granted.

Judge Joel Cohen responded to the AG’s request, stating, “The Court will conduct a conference with the parties on September 17, 2020 at 11 a.m. The Court will circulate a videoconference link to counsel in advance of the conference.”

Judge Cohen further directed the two parties to submit letters to the court outlining their positions on the issues in question. The letters must be no more than 3 pages in length and must be filed on or before September 14.

Bitfinex has now confirmed that it will be filing its response to the proposed steps. Speaking exclusively with CoinGeek, a spokesperson for the company stated:

“Despite our best efforts, we were not able to reach an agreement. While we continue to be willing to discuss a potential resolution, we will file our response to the proposed next steps in due course. We will continue to pursue a fair and reasonable process.”

The New York AG has been pursuing Bitfinex and Tether since last year, accusing the two of secretively covering up an $850 million loss at the exchange. In July this year, a New York State appeals court ruled that the investigation could continue. This was after Bitfinex submitted multiple filings seeking to have the case dismissed.

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