A court in New York has denied Tether and Bitfinex’s parent company iFinex’s latest motion to avoid the legal clap back from its $850 million cover-up.
iFinex claimed that the New York State Attorney General (NYAG) lacked the relevant jurisdiction to investigate the cryptocurrency exchange and stablecoin issuer as it claims it doesn’t serve customers in the state. The court didn’t see it the same way.
As a result, the NYAG’s inquiry will continue and iFinex will have to provide evidence and documents at the request of the courts.
“The Court finds based on the evidence and applicable law that it has jurisdiction – and a clear statutory mandate – to adjudicate this matter,” court documents read. “Accordingly, Respondents’ motion is denied, and the temporary stay of the investigation is dissolved.”
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Earlier this year, iFinex appealed to the court in what seemed like a ditch attempt to halt the NYAG’s investigation into how Bitfinex misappropriated funds to cover up an $850 million loss and unpaid lines of credit.
The case is still ongoing.
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