Bitfinex set to appeal over insistence on document reveal

Chris Lee

A cryptocurrency exchange based in New York has told the local judiciary that it will appeal against a decision forcing it to reveal its documents.

Bitfinex, which is known around the world as an exchange site, has told the New York Attorney General that it will resist efforts to make it divulge documents which pertain to its owner, iFinex.

It is believed that the New York Attorney General is conducting a thorough investigation into the cryptocurrency markets and the way in which Bitfinex managed its cash affairs.

It is understood that iFinex is registered in jurisdictions where the Attorney General’s office has no clear jurisdiction, including the British Virgin Islands and Hong Kong.

However, the latest twist in the tale is that the Supreme Court of the state of New York, which is a powerful court, has challenged this and said Bitfinex must hand over the documents.

The court case is believed to focus in particular on claims that Bitfinex moved money around the companies in its stable.

It is alleged that it took cash from Tether’s cash reserves to the tune of $700 million US dollars, and that it used this to mask the existence of around $850 million US dollars in its own accounts.

Reports in the cryptocurrency media suggest that the cash was in fact moved to a company based in Panama, called Crypto Capital.

It was then apparently distributed across a wide range of jurisdictions.

However, these allegations remain unfounded as yet. The case is set to continue, and no final outcome has been reached.

In a statement, Bitfinex said that it has never misled customers and that suggestions it had done so were “false”.

“We appreciate Justice Cohen’s consideration of our motion in late July and his order released yesterday”, it said in a statement released on August 20th.

“While we are disappointed in the decision on our motion to dismiss, we will continue to vigorously defend against any action by the New York Attorney General’s office. We look forward to the opportunity to pursue these issues further in the appellate court.”

“Any assertion that we have misled our customers about Tether (USDt), its backing, or about the negotiated transaction between Bitfinex and Tether is false”, it said.

“We remain committed, as ever, to protecting our customers, our business, and our community against the Attorney General’s meritless claims”, it added.

Bitfinex is a well-respected crypto exchange, a fact which makes its involvement in an alleged case of wrongdoing more unusual.

It claims to have a seven-day volume of $1,262,642,793 and a 24-hour volume of $142,837,052.

It also says that it is highly liquid – or, even, one of the most liquid firms in the world.

“Bitfinex offers the most liquid order book in the world, allowing users to easily exchange Bitcoin, Ethereum, EOS, Litecoin, Ripple, NEO and many other digital assets with minimal slippage”, it says.

“Bitfinex allows up to 3.3x leverage trading by providing traders with access to the peer-to-peer funding market”, it adds.


Chris Lee

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