Report – Bitfinex Secretly Continued New York Operations Until 2019


Bitfinex, Tether continued offering its services to the residents of New York longer than they claimed, the latest NYAG filing submitted on July 08, 2019 is one of its shreds of evidence. 

NYAG – Bitnex and Tether Still Continued Serving NewYorker

The New York Attorney General’s (NYAG) shared a piece of new evidence against the crypto exchange Bitinex and stable coin Tether. According to the Memorandum of Law in Opposition, an affirmation and 28 pieces of exhibits, submitted to the New York Supreme Court, it is seen that Bitfinex and Tether have several ties with residents of New York. However, the firm had earlier claimed that they ceased their operations since 2015 only. It reads that;

“The OAG has uncovered substantial ties between Respondents and New York concerning Respondents’ corporate operations; trading on the Bitfinex platform; the issuance, redemption, and trading of tethers; use of financial institutions to move money and process customer deposits and withdrawals; and representations to the market that might have been misleading,”

The filing was submitted while NYAG is still under its investigation process into Bitfinex and Tether. The document further reads that “even a cursory examination of the facts”, the investigation document proves that the company’s respondents have “extensive and consistent contract’ to New York. Just to note, in last May, these companies demanded the dismissal of the case in the New York Supreme court – because, at that time, respondents claimed: “They have nothing to do with New York investors”. Not just that, they also stated: “the businesses do not allow New Yorkers on their platforms and do not advertise or otherwise do business here”.

This isn’t the first time that Bitfinex in on top bulletins with the name of regulators – however, in past Bitfinex and Tether have been named in a large number of scandals. The most recent one to highlight is “Tether funds to cover up to $850 million loss”. It was reported that the exchange used a loan of $700 million from Tether (USDT) reserve and covered the loss of $850 million. Nevertheless, in early July, reports circulated around Bitfinex that claimed the exchange has repaid $100 million of outstanding loan via wire transfer to Tether’s bank account.

In addition, the exhibitor documentary evidence claims that the exchange held bank accounts with two New-York based banks, Signature Bank and Noble Bank – also with an unnamed financial institution that enable funds transfer between Bitfinex, Tether, and NY client. NYAG further notes that;

“Respondents have repeatedly engaged New York firms to assist them in their business objectives, including to make statements to the markets about the operation of the Bitfinex trading platform and the cash backing of tethers; and as recently as 2019, Respondents opened a trading account with at least one New York-based virtual currency firm,”

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