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The New York court rejects Bitfinex’s appeal to have lost $ 850 million

July 10, 2020

A New York Supreme Court ruled that the veteran exchanged crypto Bitfinex and its affiliated stablecoin company Tether (USDT) have to face claims that hide the loss of funds from mixed companies and customers.

The lawsuits were brought in by New York Attorney General Letitia James, who charged the companies connected with Bitfinex and various partner companies to more than hide $ 850 million in lost funds.

Bitfinex claims that its funds have been deposited with Crypto Capital, a Panamanian company accused of providing shadow banking services for virtual money exchange before it was seized by government agencies in several countries. They are working on getting the money back.

They serve, so we protect

The New York court rejects Bitfinex’s appeal to have lost $ 850 millionThe New York court rejects Bitfinex’s appeal to have lost $ 850 million

The court rejected the companies’ statement that the court was not responsible for Bitfinex because it was not based in New York It also does not provide local merchant services and claims that several of its employees worked in New York and that the USDT was used by residents.

“”Today’s decision confirms our office’s ability to use its extensive investigative powers to protect New Yorkers.“Attorney General James said.” Even virtual currencies are not above the law. We are satisfied with the court’s decision and will continue to protect investors’ interests in the market. “

Tether’s dominance stretches

The news comes with Tether’s impact on cryptocurrency markets, as Messari recently estimated The third largest crypto asset now has a market cap of over $ 10 billion.

According to CoinMarketCap Tether is the most traded crypto asset, accounting for 35% of the total daily crypto volume. In contrast, Bitcoin (BTC) pairs account for almost 26% of trading activity.