NY Attorney General Files Fraud Claims Against Bitfinex And Tether

A showdown is underway between the New York Attorney General's Office and the companies that own and operate the cryptocurrency exchange Bitfinex and issue the stablecoin tether. In short, after months of investigation, the AG's office has filed a lawsuit under New York's Martin Act (the NY laws regulating securities and commodities fraud) against the Bitfinex and Tether companies alleging that they may have defrauded Bitfinex customers and tether owners. At the commencement of the lawsuit on April 24, 2019, the AG's office obtained a court order compelling the Bitfinex and Tether companies to produce documents and information necessary for the AG's Martin Act investigation and prohibiting the companies from continuing to engage in certain transactions with each other. The companies have responded, disputing the AG's allegations and asking the court to vacate the order. At a hearing on May 6, 2019, New York Supreme Court Justice Joel Cohen upheld the order compelling