(BlockBar) On July 22, the New York Attorney General’s Office asked for the burden of proof of Tether, the issuer of USDT, and Bitfinex, its affiliate company. The two sides will hold a hearing on July 29.
Half a month ago, there was a rumor on the Internet that “USDT will disappear and the three major exchanges are in danger of closing down”. It is said that Tether is required to give evidence before July 22, and if the evidence fails, Tether will close at the end of this month. The news is a misunderstanding: Bitfinex was prosecuted by the Attorney General’s Office of the New York Department of Justice, but neither Tether nor Bitfinex is registered in New York. The Attorney General’s Office of the New York Department of Justice has no authority to regulate Bitfinex’s global operations.
Shah Hafizi said that the purpose of the hearing is that the court will review the cases based on evidence and make judgments based on relevant laws. If Bitfinex loses, it will have to pay a fine and close its business in New York. On July 22, the New York Office of the Attorney-General had put Bitfinex and Tether into proof. A following hearing will be held on July 29.
Half a month ago, The BLOCK reported that the New York Attorney General’s Office had claimed that it had obtained more evidence that the Bitfinex trading platform would still be available to New York traders by 2019, and they had already presented related sensitive documents through its private investigation to the court. Bitfinex claimed to stop providing services to New York traders in 2015, but has continued to provide services to New York residents ever since.
The head-on confrontation between the New York Attorney General’s Office and Bitfinex in the first round began on 25 April this year. Letitia James, attorney-general of the New York Department of Justice, filed a complaint with the Manhattan Supreme Court that Bitfinex, Tether and their parent company iFinex Inc. concealed a deficit of $850 million and privately misappropriated Tether reserves to cover the deficit. Bitfinex’s counterargument is that $850 million is not a deficit, but is deposited in Crypto Capital’s account, confiscated by Polish, Portuguese and American authorities, or otherwise frozen in other ways.
The Tether side argues that the regulator has no jurisdiction over the alleged acts involved. Lawyers argues that Tether and Bitfinex are not registered in New York, and that there is no evidence of actual damage to investors in a large number of documents submitted by the New York Attorney General’s Office. Zhao Dong, a Shareholder of Bitfinex, says he knows nothing about Bitfinex’s latest evidence.
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