US Court Extends Injunction Against Bitfinex
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Sept. 17, 2020

New York state court has extended an injunction by 90 days for Bitfinex, a cryptocurrency exchange, to provide documents requested by the court, Bloomberg has learned.

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Last year, New York Attorney General Letitia James accused the exchange of concealing the loss of commingled client and corporate funds.

New York state Judge Joel M. Cohen says he will defer to the referee to find out which documents related to the USDT stablecoin are pertinent to the case.

"The court does not envision a long-term injunction," Cohen added.

Earlier in September, Bitfinex filed a motion to dismiss a lawsuit according to which, the exchange triggered market manipulation with the help of the USDT stablecoin back in 2017-2018.

According to the motion, the plaintiffs did not plead direct evidence of the manipulation.

Bitfinex Offers Reward of Up to $400M for Bitcoins Stolen in 2016 Hacker Attack

The plaintiffs note that USDT was repeatedly transferred from Bitfinex to specific digital addresses as part of the manipulation. However, Bitfinex claims "unusual or abnormal circumstances are not sufficient to infer an illegal agreement."

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