A delay in NYAG’s investigation of Tether and Bitfinex

NYAG's investigation of Tether has suffered a fresh delay
  • The court has delayed the investigation of NYAG for Tether and Bitfinex until September
  • The delay had come at a very critical zone of the investigation
  • Both the firms are likely to met all their obligations under the NYAG’s request

Tether, along with Bitfinex, is being investigated by the New York Attorney General (NYAG) regarding fraud of $850 million worth customers’ funds. The investigation helped critics to generate panic among the crypto users regarding USDT tokens. Earlier this week, iFinex, the parent firm of both Tether and Bitfinex, submitted the document that will inform the inquiry course. However, recently it is found that the investigation is suffering a fresh delay until September. The delay will leave the users of the token uncertain over the outlook for one of the crypto industries most closely watched cases.

The investigation of Tether is significant for the industry

Tether (USDT) is one of the most successful cryptocurrency, as the token price is pegged with USD and linked with the traditional currencies market. According to Philippe Bekhazi, the CEO of XBTO, USDT tokens, has garnered a higher turnover than the flagship cryptocurrency and accounts for 80% of the stablecoin market. Observing the importance of USDT, the investigation of NYAG has become very significant to the entire crypto industry. The investigation can confirm whether the token is 100% pegged with the traditional currency. With this, not only the token users, but the entire world will be able to gain trust in the crypto industry.

The investigation of NYAG is in a critical zone

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iFinex, have submitted the produced documents after struggling for more than twelve months. The submitted documents are expected to provide insights into whether NYAG will file a lawsuit against the firms. After September 2020, again at such a critical stage, the court marked a second delay for producing the documents at a virtual hearing in September 2021. In the last hearing, NYAG denied to comment regarding, and Bitfinex denied wrongdoing. On Tuesday, the court filing mentioned that the firms had mostly completed the document production and produced a substantial material volume. Still, only a few supplemental agreed upon items that needed to be finished. 

The firms have met all their obligations under the NYAG

According to Stuart Hoegner, the General Counsel of Tether and Bitfinex, After producing 2.5 million pages of materials, both the firms have met all their obligations under the NYAG’s request. Regulators around the world are already circling cryptos by asking more stringent rules to govern such assets. 

According to Sassan Danesh, a managing partner of Etrading Software, because of the popularity of stablecoins like Tether are likely to be one of the first ports of calls for watchdogs in the industry.

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Ahtesham Anishttp://www.thecoinrepublic.com
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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