Bitfinex Crypto Exchange Granted a Stay on NYAG Document Demands
Bitfinex has claimed that the NYAG’s preliminary injunction was too vague, asking for a stay and a chance to continue business as usual.
Bitfinex has been granted a stay on document demands, meaning the iFinex market operator is not obliged to disclose documents based on the New York Attorney General’s demands. This development, for now, will pause some of the heated discussions surrounding iFinex, Bitfinex, and Tether, issuer of the USDT stablecoin.
While many in the crypto community have been highly critical and skeptical of iFinex and Tether, the court of law was convinced that the investigation was too broad and onerous.
“Today, the Hon. Joel M. Cohen of the New York Supreme Court (Commercial Division) entered an order granting our motion for an immediate stay of the document demands, requiring the companies to produce only documents and information relevant to the limited issue of whether there is personal jurisdiction over the companies in New York but staying the document order in all other respects,” Bitfinex announced.
Another hearing for the motion to dismiss the NYAG injunction is scheduled for July 29. Bitfinex managed to defend against the broad injunction and narrow the scope of the investigation as well.
Bitfinex has also received criticism for its dubious sale of the LEO token, which, however, is outside the scope of the investigation. The LEO token was supposed to carry a privilege of lower withdrawal fees, but Bitfinex went on to extend the same lowered fees to all users.
Additionally, the LEO token will now be propagated as an Ethereum and EOS-based asset. The exchange has deployed 660 million Ethereum-based tokens, and 340 million based on the EOS protocol. In the coming weeks, another version of the token may appear on Liquid Network. Traders can switch between the different versions through Bitfinex, and withdraw to the respective wallets for each network.
Currently, the LEO token, which reportedly attracted $1 billion’s equivalent of inflows in a week, marks trading volumes of just around $2 million, all restricted to two pairs on Bitfinex. Skeptics pointed out that the low activity of the token was mismatched to the large-scale sale just days before. LEO hovers at a price of $1.08 currently, a small gain over the nominal sale price.