Bitfinex Says It’s Nearly Done Turning Over Documents to NYAG

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Bitfinex expects the delivery of the documents to the New York Attorney General (NYAG) office to be completed in the coming weeks. This is a procedural hurdle that would bring the prosecution’s investigation into Tether’s alleged cover-up of $ 850 million one step closer to completion

Charles Michael, Steptoe’s attorney who represents the defendant Bitfinex, told the court on Tuesday that parent company iFinex “produced significant volume [of] Material ”for NYAG already. He said the next update would come in 30 days.

The documents could provide information on iFinex’s financial history. New York prosecutors alleged in April 2019 that Bitfinex recorded a loss of over $ 850 million by replenishing its books with a massive tether loan. iFinex has fought these allegations in the state Supreme Court.

NYAG has been fighting for these documents since mid-2019. Judge Joel Cohen then ordered iFinex to continue to hand over documents related to the alleged cover-up, which an appellate judge would reverse a month later, at least until a full appeal court hearing could be completed. The companies later still had to hand over documents through the appeals court.

How long it will remain in the document production phase remains to be seen. The New York Public Prosecutor’s Office announced in mid-December that the delivery of the document would also be completed “in the coming weeks”.