A judge serving the supreme court of New York bench has ruled that Bitfinex and Tether must continue turning in documents about an alleged US dollar 850 million cover-ups over to the New York attorney general, NYAG. Supreme Court judge Joel M Cohen ruled that the crypto exchange and stablecoin issuer will have to maintain and continue turning over documents about a loan that the latter company issued to Bitfinex even though the companies are expected to appeal the ruling.

Judge Cohen said the injunction was set to expire on October 14.

He further added that “the court disagreed with the petitioner authorities (or can be) premature for the court to determine whether it has jurisdiction to issue orders impacting the rights of respondents in this proceeding. That said the court finds based on the evidence and applicable law that it has jurisdiction and the clear statutory mandate to adjudicate this matter. Accordingly, respondent’s motion is denied, and the temporary stay of the investigation is dissolved.”

This decision that was made by the Supreme Court in New York gives Bitfinex and Tether another 90 days to hand over documents even as the ongoing Investigations by the New York attorney general’s office continue to raise questions about the loan. The New York Attorney ‘General’s office filed for an injunction in April after alleging that Bitfinex is trying to cover up the loss of US dollar 150 million held by a payment processor called crypto capital.

In a letter presented to the Supreme Court in New York the day after the hearing, Bitfinex and Tether defense attorneys said the companies as of current had already spent USD 500, 000 just finding documents to comply with the existing injunction putting 60 different lawyers to work to pull files from 10 different communication systems.

The attorneys also said that they would appeal any ruling in favor of the New York attorney general office. However. Bitfinex and Tether will still be required to hand over a number of documents about the company’s relationship and the deal to the court. Attorneys for the company filed a motion to dismiss the New York attorney general’s case entirely claiming that the government did not have any jurisdictional authority over the company, which claimed not to operate, work or serve any New York-based customers. Additionally, the New York attorney general’s office has made claims that Bitfinex and Tether had negotiated a line of credit that would allow Bitfinex to borrow and even receive as much legally is USD 700 million from Tethers reserves.

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