Bitfinex and Tether claim a 'victory' in court battle with NYAG

Bitfinex is praising a recent New York Supreme Court judge's ruling, which the exchange claims supports its assertion that the New York Attorney General's office actions against it lack legal validity. 

Hon. Joel M. Cohen of the New York Supreme Court today granted a motion that limits the scope of the documents Bitfinex and Tether must produce at the request of New York Attorney General's office, according to a news release from Tether.

Bitfinex and Tether had filed a motion to dismiss the case outright, but the judge instead granted a stay of document demands, which restricts the NYAG's office to documents regarding its activities in New York.

Bitfinex and Tether argue New York has no jurisdiction over them, and with Cohen’s granting of the motion, they will have to produce documents supporting that claim, with their counsel submitting a brief and arguing the claim.

The companies also filed a motion to dismiss the proceeding altogether, citing a lack of jurisdiction since they say neither Bitfinex nor Tether conduct business in New York.

They also pointed to the state’s Martin Act, which would give the NYAG more power to execute its case, as not applicable to the situation at hand. The anti-fraud law empowers the NYAG in securities fraud investigations, but the companies argue it does not apply since they are foreign corporations and the documents requested are stored overseas.

Tether called Cohen’s decision to grant the stay of documents another “victory” in the legal battle.

“We welcome Justice Cohen’s decision, which reflects that our motion raises significant legal challenges to the validity of the Attorney General’s actions,” the company said in a release.

The company submitted the motion limiting the document demands under penalty of perjury. If Cohen rules that Tether and Bitfinex currently have no ties to New York, and no previous ties over what the court deems a reasonable amount of time, the state will no longer have jurisdiction over the case. The hearing for the motion to dismiss is slated for July 29, according to the release.