NY Attorney General expects Bitfinex/Tether case documents in weeks

The Office of the Attorney General of New York reported that Ifinex has been cooperating in the production of documents relating to Bitfinex’s and Tether’s trade relations since April 2019.

NY Attorney General expects Bitfinex/Tether case documents in weeksNOTES

The New York Attorney General’s Office, or OAG, has requested an extension of the deadline for iFinex Inc – the parent company of the Bitfinex crypto exchange and stablecoin Tether’s issuer – to produce the documents requested for its ongoing legal battle.

On 9 December 2020, the OAG wrote to Judge Joel Cohen to request that the deadline be postponed until 15 January 2020 – presumably a typo and, indeed, a request for the same date in 2021.

The request followed a virtual hearing on September 17, which concluded with the judge ordering a 90-day extension for iFinex to produce documents relating to trade negotiations between Bitfinex and Tether in April 2019 – when the OAG accused iFinex of mixing funds between two companies to cover the $850 million that Bitfinex lost by hiring the services of shadow bank Crypto Capital.

The OAG claims that iFinex has cooperated in the production of the requested documents since the September 17 hearing, predicting that the process will be „finalized in the coming weeks.

Despite persistent controversy, Tether’s USDT saw another record year of adoption, with the stable token expanding to operate in Omni, Ethereum, Eos, Algorand, Liquid and Solana.

According to CoinMarketCap, Tether’s capitalisation increased by 382%, from US$4.1 billion in early January to over US$19.76 billion today – suggesting that Tether’s admission in May 2019 that USDT was supported at only 74% for cash and equivalents did little to reduce demand for the stablecoin.

Tether’s relative volume dominance over the BTC also extended to 65.5%, compared to 16.2% earlier in the year. USDT currently accounts for 38% of the combined cryptomime volume.