NY Attorney General Presses Bitfinex Over Document Production
The New York Attorney General's Office (NYAG) has renewed its request for documents from iFinex, the parent company of crypto exchange Bitfinex, in its ongoing fraud investigation. In a recent court filing, the NYAG argued that any responsible trading platform should have immediate access to the requested records.
NYAG Criticizes Resistance to Disclosure
The latest letter to Judge Hon. Joel M. Cohen comes amid ongoing legal sparring over compliance with document demands. Bitfinex's counsel had recently stated the company had already spent over $500,000 responding to these requests. The exchange described the process as complicated and expensive, asking the court to grant relief.
The NYAG countered that Bitfinex's claims about the difficulty of gathering data�including records of tether transactions, corporate accounts, tax documents, and customer withdrawals�were overstated. The attorney general emphasized that these types of records should be readily available to any well-managed trading platform.
Arguments Over Legal Costs
Bitfinex further contended that the expense of responding to legal requests posed �irreparable harm.� The NYAG disputed this point, citing legal precedent that discovery costs and legal fees do not qualify as irreparable injury. The office urged the court not to halt the document production process based on cost assertions.
Context of the Case
This exchange marks the latest development in a case that began in April. The investigation centers on allegations that Bitfinex and affiliated stablecoin issuer Tether co-mingled funds to cover an $850 million loss. The NYAG has continued to seek information to determine the extent of these allegations.
- NYAG insists required records should be easily accessible.
- Bitfinex claims the process is resource-intensive and costly.
- Court filings reflect a broader attempt to obtain information on exchange and client activities.
The court�s response will shape the next steps in the ongoing inquiry into Bitfinex's operations and financial practices.
Related content
Comments
