NYAG continues pushing for its case against Bitfinex, calling its argument “forfeited and meritless”

Quick Take

  • The New York Attorney General (NYAG) defends its ongoing investigation against Bitfinex in a Dec. 4 filing to the Supreme Court of the State of New York
  • The office argues that the state’s Martin Act gives it broad power to investigate potentially securities and commodities fraud before making a decision to file suit, and that Bitfinex’s challenge to this authority misperceives that power it has by law.
  • Challenges to jurisdiction are rebuffed by NYOAG by reference to evidence before the hearing court of relevant contacts with the state as recently as 2019.

The New York Office of the Attorney General (NYOAG) recently filed a brief in a New York Appellate Court on December 4, responding to an appeal by Bitfinex and describing the exchange's arguments as “backward,” “forfeited,” and “meritless.”

The appeal arises out of an underlying investigation by the NYOAG of Bitfinex under New York's Martin Act into potential securities and commodities fraud by the exchange.  The state argues that it has broad authority under the statute to investigate potential wrongdoing in or concerning New York state, including the production of documents and witnesses, in aid of an investigation, prior to a decision being made on the institution of formal legal proceedings.  

Among other things, NYOAG has suggested that Bitfinex might be illicitly us