The New York City prosecutor's office has sufficient powers to investigate the activities of the Bitfinex cryptocurrency exchange, the court ruled.
According to the decision published on August 19, the New York City prosecutor's office may continue to investigate alleged fraud and misleading clients of the exchange. The prosecutor's office claims that concealing the loss of $850 million to Bitfinex from Tether's reserves constitutes a fraudulent act on the part of New York investors.
The document states that Judge Joel Cohen rejected Bitfinex's motion to stop the prosecution in accordance with the laws in force in New York.
"The court objects to the statement that it may be premature to make a decision on jurisdiction in this case, which may affect the rights of the defendants. Thus, the court, guided by the evidence and applicable laws, considers the case admissible. Accordingly, the petition of the defendants will be rejected, and the temporary ban on the investigation is lifted," the court explained.
The issue of Bitfinex's control over the authorities in New York City has recently been the focus of proceedings. Representatives of Bitfinex and Tether said that their companies did not provide services to residents of New York, where there are special rules of regulation of the cryptocurrency industry.
The judge, however, found the companies' statements groundless and allowed the investigation to continue in the state. Bitfinex and Tether will have to provide the documents on their operations of interest to the investigation.
What do you think steemians is tether scam? or this kind of news are only to make bitcoin a little lower?
If tether will scam will bitcoin go under 3k?
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