Justice Joel Cohen of the New York Supreme Court has granted Bitfinex’s motion to modify the injunction by the New York Attorney General’s office because “the original injunction was vague, overbroad, and not time-limited,” as stated in the official announcement on the company’s website. The announcement goes on to clarify that the order has given Bitfinex and its affiliated stablecoin operator Tether to continue their normal operations.
The Ongoing Battle
The ongoing battle between Bitfinex and the New York Attorney General’s Office is regarding a particular financial irregularity that the company was allegedly involved in and preferred to let go unreported. The cryptocurrency-exchange Bitfinex was said to have incurred a loss of $850 million which it covered up through funds from its subsidiary- Tether. The company was charged for not informing either the customers or the shareholders about the incident.
The company in the announcement has supported the decision of the New York Supreme Court which has stated that the injunction should be as narrow as possible. Moreover, even when the narrower injunction is to proceed, the functions of both Bitfinex and Tether will carry on like usual. The order further goes on to mention that the injunction will expire in 90 days, after which the onus of renewal will fall on the shoulder of the New York Attorney General’s Office.
Bold Statement by the Company
Bitfinex has further taken a fiery stance by stating that as the New York Attorney General’s Office disregarding their previous cooperation has decided to take ex-parte action against the company; the company too will make sure to give a steady fight against any action from them.
The company has further reiterated its commitment towards protecting its customers, its community of investors, and its business. Meanwhile, the incident has left many crypto enthusiasts in a dilemma regarding the stability and credibility of the field.
Image: Useacoin / Shutterstock.com