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The arguments that Bitfinex and Tether have served New York residents until 2018 are misleading, according to new legal filings filed by corporations.
Stuart Hoegner, Advocate General of Bitfinex and Tether, claims in a new statement that the Attorney General's New York office claimed that Empire State residents had used the company's platforms much longer than had previously announced "contains a number of inaccurate and misleading claims".
According to Hoegner, certain documents submitted as evidence by the NYAG that seem to indicate how New York residents could negotiate on Bitfinex "clearly indicate that we would only deal with a foreign entity not present in New York", while other documents describing Bitfinex customers based in New York were actually on "foreign PCUs" [eligible contract participants]. "
According to Hoegner, these foreign PCUs include Galaxy Digital, former partner of the Fortress, Mike Novogratz, whose address is registered in New York.
Other traders listed as New York residents were also "foreign PKUs," says Hoegner.
In addition, Bitfinex stopped serving New York residents in January 2017 and all US residents in August of the same year, says Hoegner. He added that all entities and corporate customers based in the United States were banned a year later.
Other arguments
Bitfinex and Tether's lawyers argue that the New York Supreme Court should dismiss the case, as NYAG's office has not served its papers on Bitfinex, Tether or other companies affiliated in accordance with the law; the companies "were not deliberately used to doing business in New York"; USDT is not a security or merchandise within the meaning of the state's Martin Law; and the law cited by the NYAG office does not apply.
The filing also contends that NYAG is wrong to claim its jurisdiction on the grounds that New York residents may have used the Bitfinex platform during the summer of 2018, this period ending well before the stock market n & # 39; For the first time, it lost access to its funds in October 2018. The main question on which the NYAG office is supposedly leans.
The case began in April 2019, when the NYAG office filed a lawsuit against Bitfinex, Tether and other affiliates, claiming that Bitfinex had covered the $ 850 million loss by borrowing from Tether's reserve.
Tether, the issuer of the USD (US $), has granted a $ 900 million credit line to Bitfinex, although the cryptocurrency did not borrow the full amount until it was cleared. a judge issued an injunction blocking the movement of funds from the issuer.
Bitfinex and Tether's lawyers say the decision to extend the line of credit was made independently, although the companies share managers and owners.
Monday's documents are intended to support Bitfinex and Tether's request to dismiss the NYAG case. The parties must appear in court on July 29.
Image of the New York Supreme Court via Nikhilesh De for CoinDesk
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