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NYAG – Bitfinex/Tether Case Intensifies, Deadline Extension Requested

The Office of the New York Attorney General, or the OAG, has once again requested a deadline extension for iFinex Inc. – the company behind both the stablecoin issuer Tether and the cryptocurrency exchange Bitfinex to produce the required documents concerning their ongoing legal battle. 

In a letter filed on Wednesday, December 9 with Justice Joel Cohen – the judge who has been administering the NYAG’s inquiry into Bitfinex and Tether – the NYAG has asked for the deadline to be pushed back until January 15, 2020 – which is presumably a typo and actually a request for a deadline of January 15, 2021.

The case dates back to April 2019,  when the OAG accused iFinex of merging funds between the two aforementioned organizations. The OAG has claimed that Bitfinex attempted to gloss over the loss it suffered of worth around $850 million in funds held on behalf of customers through the payment processor Crypto Capital, with funds secretly borrowed from its sister firm Tether.

It’s to be noted that Cohen had allowed the deadline to be drawn out once already back on September 17, when he ordered a 90-day extension for iFinex to hand over all documents outlining the financial relationship between Bitfinex and Tether.

In the December 9 letter to Justice Cohen, the OAG states that iFinex has been cooperating with its inquiry by producing the requested documents since the September 17 hearing, and that it expects  the process to be “finalized in the coming weeks.”

Meanwhile, despite the ongoing controversy surrounding the organization, Tether’s stablecoin USDT has witnessed another successful year for adoption; it has expanded and now operates on the Ethereum, EOS, Algorand, Omni, Liquid, and Solana networks. As per data from CoinGecko, Tether now has a market capitalization of about $20 billion, which is a sharp increase from the $4.1 billion at the beginning of January, 2020. 

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