Bitfinex and Tether’s legal counsel has written a response to the New York Attorney General’s (NYAG) ex parte order, which claims that Bitifinex used Tether’s reserves to cover some $850 million in losses.In short, the affidavit writes off the NYAG’s concerns, calling them baseless and requesting an Order to Show Cause that would require the NYAG to prove its case in court unless it vacates or modifies the ex parte order. Additionally, it requests that the Supreme Court of the State of New York stay the NYAG’s order, meaning Bitfinex would not have to comply with a May 3, 2019, deadline requiring the exchange to produce documents related to a $900 million line of credit Bitfinex established with Tether to stanch the $850 million loss.Authored by Stuart Hoegner, who has served as Bitfinex and Tether’s legal counsel since 2016, the affidavit is scathing in its rebuke of the Attorney General’s claims. Hoegner writes that the Office of the New York Attorney General’s (OAG) “preliminary injunction serves no useful purpose” and that it “has succeeded only in spreading misinformation to the markets.”Marked throughout with a tone of defiance, the letter asserts that “Tether holders are not at risk,” despite the NYAG’s framing of the situation in its own letter. Further, it claims that Bitfinex self-reported its troubles with Crypto Capital to the NYAG, the payment processor that allegedly led to Bitfinex’s $850 million loss of custo...
