Crypto Exchange Bitfinex’s Appeal Cancelled by New York Court

The New York Supreme Court recently rejected Bitfinex and its sister company Tether’s appeal in an ongoing dispute with the New York Attorney General. The dispute is related to $850 million in lost funds.

Bitfinex must face claims

According to the Supreme Court, Bitfinex and its sister concern Tether must face the claims in the ongoing dispute. The cryptocurrency exchange and the stablecoin issuer must answer the AG’s queries into the mixing of the client and corporate funds. Bitfinex further noted that its funds were deposited with a Panama-based firm called Crypto Capital. The firm was providing shadow banking services to digital currency exchanges before it was seized by authorities in different countries. The exchange said that its funds were stuck with the firm and they are trying to recover them.

Bitfinex suggested that the AG or court does not have jurisdiction over it as the company is neither based in the US, nor it provides services to local traders. But the court said that several of its staff members were working in New York and Tether (USDT) was also being used by local residents. Therefore, the court has jurisdiction over the company.

AG’s case gets more validation

Attorney General Latoya James commented on the court’s decision and said,

“Today’s decision validates our office’s ability to use its broad and comprehensive investigative powers to protect New Yorkers. Not even virtual currencies are above the law. We are pleased with the court’s decision, and will continue to protect the interest of investors in the marketplace.”

However, while the AG is tightening its grip over the two companies, Tether continues to be one of the most dominant forces in the crypto market. Messari recently estimated that its market capitalization is well over $10 billion. Tether is also the third-largest crypto asset in the world. CoinMarketCap data further solidifies its dominance. It is the single most traded digital asset which is responsible for about 35% of the daily crypto volume. Bitcoin is responsible for 26% of the daily volume.