A new court filing indicates that the New York Attorney General has received much of the information it has sought from iFinex, the parent company of stablecoin issuer Tether and crypto exchange Bitfinex.
The letter, penned by Steptoe partner Charles Michael, explains:
"The Respondents have largely completed the document production and have produced a substantial volume material to the Office of the Attorney General (“OAG”) in the past few weeks, although there remain supplemental agreed-upon items that need to be completed. The parties will need a few more weeks (i) to produce the supplemental information, (ii) for OAG to review the production, and (iii) to discuss further among themselves what if any further proceedings may be necessary."
The document production is part of the longstanding case between the two which began in April of 2019. At that time the NYAG alleged that iFinex had co-mingled funds between its offshoots Bitfinex and Tether to cover up an $850 million loss for Bitfinex.
During the course of 2020, the NYAG sought to compel iFinex to produce documents related to its investigation. Bitfinex and Tether repeatedly disagreed during the court proceedings, citing jurisdictional issues among other arguments to avoid producing the documents.
However, the NYAG won the ruling and iFinex later lost its appeal on the decision in July. iFinex later failed to produce the documents during the court-appointed, 60-day window, leading to further proceedings.