Supreme Court has Ordered Bitfinex to Provide Documents Demanded by NYAG

The supreme court of the state of New York has decided that the office of Attorney General of New York (NYAG) has authority over Bitfinex the cryptocurrency exchange. As per the court filing, the decision has let NYAG continue the investigation and demand the documents as and when the law enforcement agency requests. The court filing happened on 19th August.

Bitfinex previously pleaded to the court to pause NYAG inquiry on the intermixing of the funds to make up $850 million damage. Although NYAG disagreed and said, it was too premature for the court to address the authority questions while the enduring investigation.

The judge Joel Cohen has dismissed the appeal by Bitfinex and has said the court can indeed decide into such matters and has also rejected its request to thwart NYAG investigation. He has told NYAG to carry on its investigation.

The situation has led to a legal battle between NYAG and Bitfinex. The exchange has said they have hired around sixty lawyers and has spent $500,00 to comply with the documents demanded by the law enforcement agency.

The question of jurisdiction has become a primary matter of concern for the case. The lawyers of Bitfinex and Teether have claimed that they have already submitted documents demanded by the court and have never served any customer in New York. The lawyers have further said that if the state is successful in proving that they have served people of New York, but they will never be able to establish that their activities have ever harmed any customer.

The court at present has upheld the 22nd May order that limits NYAG to demand documents from Bitfinex. In the meantime, the stay order forced on NYAG to appeal documents from Bitfinex is also eradicated. This means the necessary documents asked by NYAG has to be submitted by the cryptocurrency exchange. As the filing, the exchange has time up to 14th October to turn over the documents.

Bitfinex claim of not serving the New York customers have complicated the situation. As per bitfinex exchange review, the US-based customer can access the platform by simply lying about their geographical location.