Bitfielde: The Supreme Court ruled "victory"
The abusive exchange called the government a "victory" and suggested that the case would end nowhere. Bitfinex has already admitted that up to $ 850 million have been extinguished from its treasury, while Tether Limited publicly admits it has only partially supported the oldest stable in the world.
According to the order, Tether and Bitfinex can continue to operate as usual, but Tether Limited can not borrow Bitfinex. Furthermore, as long as the injunction has been changed, Bitfinex and Tether are called upon to cooperate with the investigation as far as possible.
"Having already heard the two sides of the story, the Court partially rejected the respondents' suggestion and rejected it partially for the reasons set out in the minutes of the hearing on 6 May 2019 and as summarized here. In short, the Court finds that the petitioner is entitled to the order requiring the defendant to provide evidence immediately, but that the preliminary provision contained in the order should be changed. "
The New York Court provided Bitfinex with the proposal to change the order: https://t.co/b8TY0QBvYs
– Bitfinex (@bitfinex) May 16, 2019
Credit Line Tether-Bitfinex Frozen
Judge Joel M. Cohen notes that an important part of the Prosecutor General's investigation is based on the idea that Bitfinex has secured a credit line from Tether. While the investigation continues, Tetfinex will not be allowed to borrow Bitfinex and both companies must provide information on this situation. By ruling that the law in New York does not give the AG card-blanche, the court reaffirms AG's right to investigate commercial law in New York.
"[T]The Court finds that the petitioner has provided sufficient evidence to justify a purposeful preliminary order preventing the defendants from continuing to let the dollars out of Theter's reserves through the type of extraordinary transaction that caused the applicant's concern.
Moreover, noting that Bitfinex denies AG's characterization of Tether's relationship with Tether, the order more or less rejects the notion that the government has no power over how these companies operate.
How the mighty fall
Bitfinex believes the investigation is a dead end. The position smells of the mantra of Donald Trump and his supporters. The company claims she was wrongly investigated and seems bitter that she voluntarily collaborated with the authorities earlier:
"The New York Chief Prosecutor's Office tried to continue ex parte against us and in bad faith, regardless of our previous, historic and voluntary co-operation with them. We will fight vigorously against any action by the Chief Prosecutor's office in New York, and we remain committed, as always, to protecting our clients, our business and our community against their deserved claims. "
Part of the problem with Bitfinex and Tether's behavior is that investors were not aware of unusual deals. Whatever the result, Bitfinex and Tether are at the intersection of one of the least friendly US governments, despite Bitfinex's apparent confidence, the effect of this decision is a little annoyance for New York's Chief Prosecutor.