Bitfinex and Tether must turn over documents detailing their financial relationship and history to the New York Attorney General’s office (NYAG), a New York Supreme Court justice ruled again on Thursday.
Judge Joel M. Cohen, the judge who has been overseeing the NYAG’s inquiry into Bitfinex and Tether, made the ruling after a charged, hour-long hearing on Thursday. Counsel for the crypto companies argued the document production order is too broad while the NYAG’s office argued the order is reasonable, saying Bitfinex has not submitted anywhere near the sufficient documents despite the amount of time that has elapsed since the case began.
Cohen didn’t set a firm deadline for when Bitfinex and Tether would have to produce these documents, leaving that decision to a special referee, but said a deadline would need to be set. As part of his order, he extended an injunction that would have ended in the next few weeks barring Tether from loaning funds to Bitfinex by 90 days.
Cohen opened the hearing by noting that the First Department – the appeals court that rejected Bitfinex’s last effort to dismiss the case – had specifically limited the role he could play in the ongoing investigation. Through the hearing, he refused to make specific rulings limiting the scope of the document production request.
The parties are expected to report the schedule back to the judge after the special referee makes that decision.
“We ought to be allowed to push back,” said Charles Michael, an attorney with Steptoe and Johnson, representing Bitfinex in an ongoing case against the New York Attorney General’s office.
Michael was referring to Bitfinex’s effort to reduce the scope of a document production order the NYAG secured in April 2019, asking for details about the crypto exchange’s financial history and transactions with Tether, the stablecoin issuer with which it shares corporate owners and key executives.
Read more: NY AG Asks Court…