Court Grants Motion to Modify Injunction Against Bitfinex

A New York Supreme Court judge has granted a motion to modify the preliminary injunction filed against Bitfinex by the New York Attorney General (NYAG).

According to the publically available documents, the NYAG’s injunction will expire in 90 days. However, the attorney general’s office can file a petition for an extension two weeks before expiry.

The court also finds the preliminary injunction to be vague and now wants it to be modified, covering a narrow scope.

“The Court finds that the preliminary injunction should be tailored to address OAG’s legitimate law enforcement concerns while not unnecessarily interfering with Respondents’ legitimate business activities,” Judge Joel Cohen wrote in the motion.

“The Petitioner [NYAG] contends that she does not intend to restrict Respondents’ ordinary course of business activities, but the existing language creates a risk of doing just that.”

The judge also ordered Bitfinex to submit all the necessary documents for the NYAG’s on-going investigation, along with the information on the loan and line-of-credit provided by Tether.

Continue with the normal operation

The motion also specified that the stablecoin operator cannot loan any assets or distribute funds from its reserves to its executives or employees. However, it can utilize its funds for the normal course of operation including payrolls and consultant or vendor Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Bitfinex and Tether came under the spotlight as last month as the NYAG alleged that the Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term had covered $850 million in losses by utilizing funds from Tether’s reserves. The New York authorities also secured a preliminary injunction to freeze Tether’s assets and asked for documents related to a $625 million loan and a $900 million line of credit it offered to Bitfinex.

In a publically released statement, the crypto exchange praised the judge’s decision stating: “We believe that the court’s decision today leaves no doubt that both Tether and Bitfinex are entitled to run their businesses in the ordinary course, even during the short period when this now narrowed preliminary injunction is in place.”

“We will vigorously defend against any action by the New York Attorney General’s office, and we remain committed, as ever, to protecting our customers, our business, and our community against their meritless claims.”