Bitfinex and Tether hit back at NYAG’s allegations

Under-fire cryptocurrency exchange Bitfinex and the company behind its native stablecoin – Tether – have responded to allegations made by the New York Attorney General’s office (NYAG) in bold fashion.

The NYAG has stated that Bitfinex wrongfully served New York residents throughout 2018, but a new legal filing by Bitfinex claims that these allegations are “misleading”.

According to an official court document, Bitfinex’s general counsel Stuart Hoegner disputed the NYAG’s accusation that New York residents were using the platform for longer than previously stated by saying it “contains a number of inaccurate and misleading assertions”.

Bitfinex goes on to state that it ceased trading for New York residents in 2017, and that “Bitfinex and Tether do not transact with any New York ECPs [eligible contract participants]. All references to New York-based trading or virtual currency firms … refer to foreign entities.”

The Hong Kong-based exchange has also fallen under scrutiny for its connection to CryptoCapital and the alleged misappropriation of funds, although it claims that no New York customers have suffered during this issue.

Bitfinex continued: “No NY customer has been identified by the OAG as having suffered any loss or harm from the CryptoCapital problems or the Bitfinex/Tether loan transaction.”

The exchange then proceeds to debunk the NYAG’s claims of allowing US customers to trade on the site, stating: “This proceeding is a perfect example of what the Companies, at the cost of losing significant potential business, had intentionally tried to avoid.

“The Companies do not advertise or market to individuals or entities in the United States or New York.

“Respondents in fact produced a significant amount of data and documents related to unverified users of the Bitfinex platform … 70k pages of documents … across 10 different communications platforms.”

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