Today the general counsel of Bitfinex and Tether, Stuart Hoegner, published a tweet about the lawsuit filed by the Attorney General of New York.
In the tweet he quotes a letter sent yesterday by the Attorney General’s Office (OAG) to Justice Cohen of the Supreme Court of New York, requesting the immediate production of the requested documentation to Bitfinex and Tether.
„Despite our best efforts, we were unable to reach an agreement. While we continue to be available to discuss a potential resolution, we will present our response in due course. We will continue to pursue a fair and reasonable trial.
In fact, in the letter, the Assistant Attorney General, Brian M. Whitehurst, writes:
„The OAG will ask the Court to order the immediate production of the documents and information by the defendants as required by the order of April 24, 2019 […], to be completed no later than sixty days from the date of the order. The OAG will also require the Court to extend for a further ninety days the injunction previously inserted in this matter“.
The case between Tether and Bitfinex and the Attorney General of New York
It is since April 24 of last year that this lawsuit filed by the Attorney General of New York, Letitia James, against Bitfinex and Tether is ongoing.
Judge Cohen had at first postponed the decision, but requested that the entire documentation regarding the charges be produced.
iFinex, the holding company of the group of Bitfinex and Tether, had filed a motion that it could not be held responsible for the charges before the New York courts, but in the end, in July 2020, all attempts to have the case dismissed failed.
At this point the company attempted to reach an agreement with the Attorney General of New York, but yesterday’s letter also put an end to this attempt.
Now they will probably be forced to produce all the documentation, and the case will go ahead.
Bitfinex and DeFi
Meanwhile the CTO of Bitfinex, Paolo Ardoino, intervened on the issue of recent losses in the DeFi sector, recalling that although decentralized exchanges have their advantages, being non-guardian and on-chain solutions, „not everything that glitters is gold“.
In fact, says Ardoino, DEX have problems with the capacity of blockchain nodes, have gaps in Know Your Customer (KYC), and have limited capacity and speed.
On the other hand, centralized exchanges can also make non-guardian solutions available, as Bitfinex is doing with EOSFinex, for example, so much so that hybrid solutions can help CEX deliver high performance in full compliance with regulations.
For example, Bitfinex has seen a 90% increase in KYC verification requests in the last month alone.