Joel M. Cohen, a judge of the Supreme Court of New York, decided yesterday to extend the preliminary injunction in the case against crypto exchange Bitfinex and Tether's parent company iFinex.
The judge has decided to extend the preliminary injunctions for 90 days in order to allow investigators to collect more evidence. As a result, Bitfinex and Tether will be able to continue operating, however, the exchange cannot borrow funds from Tether.
Although Tether's lawyers have tried to convince the judge to dismiss the case, Cohen has decided to give the investigators more time before making a final decision.
The investigation began after Bitfinex allegedly lost about $850 million from its clients and attempted to cover those losses with Tether funds.
Both companies argued that the New York court has no jurisdiction to investigate the case because they were not operating in the state of New York during that period. However, in July investigators found some signs that might prove they had actually been operating in the state.
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