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New York Attorney General: Bitfinex and Tether could complete loan document handover in ‘weeks’

The New York Attorney General (NYAG) expects the handover of loan documents relating to an alleged $850 million cover-up will be completed in “the coming weeks.”

According to coindesk, in a letter filed with the New York Supreme Court on Wednesday, the NYAG said stablecoin issuer Tether and cryptocurrency exchange Bitfinex had been cooperating with its inquiry.

The NYAG also stated the timeline for documents to be handed over would come after a deadline, previously mediated by the court, that once again ordered the crypto companies to hand over documents outlining their financial relationship.

Therefore, the NYAG seeks in the letter to expand an injunction, which bars Tether from loaning Bitfinex any further funds, to Jan. 15, 2021. The date has previously been extended on multiple occasions and is again expected to expire this week before the documents are provided.

The NYAG has claimed that Bitfinex attempted to cover up the loss of $850 million in funds held on behalf of customers via payment processor Crypto Capital, and that it secretly borrowed the shortfall from sister firm Tether’s reserves.

According to markets data site CoinGecko, Tether issues the USDT stablecoin, which now has a market capitalization of close to $20 billion.

Counsel for the crypto companies previously declared the document production order was too broad. The NYAG’s office declared otherwise claiming Bitfinex’s attempts to delay the then 17-month-old order “must stop.”

Bitfinex has filed for multiple subpoenas in an attempt to recover the roughly $1 billion it lost.

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SourceCoinDesk

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