Bitfinex: In the absence of victims, the arbitrariness of the prosecutor’s office does more harm than good
The parent company of Bitfinex exchange and stablecoin issuer Tether iFinex has come up with new arguments against the New York prosecutor’s charge, which, according to the defendant, was “based on incomplete or incorrect facts and distorted legal standards.” According to iFinex, the Bitfinex line of credit did not result in “casualties” among clients, so there was no need for “decisive intervention” to protect their interests..
A document dated May 5 and signed by iFinex has been posted on the NYC Judiciary website, in which the company says the attorney’s office should first clarify whether it considers USDT to be a security or a commodity regulated under the NYC Anti-Fraud Act. (the so-called “Martin’s Law”). iFinex believes prosecutors should prepare a legal framework “to regulate this space in general” and “resolve the issue of stupid claims to documents” Tether and Bitfinex.
iFinex also says the order is having a “huge disruptive effect” on the company, as it makes it impossible to use the $ 2 billion in Tether’s reserves and receive investments “in the indefinite future.” According to the company, “a significant excess of regulatory powers does not entail corresponding positive consequences”, since the exchange was not involved in fraudulent activities and caused “much less harm than it is doing now”.
The company draws attention to the fact that USDT holders are currently free to exchange their tokens for dollars, and Tether “has excess reserves to meet demand”, and will disclose to clients all information that it considers “significant”, although “he has such a responsibility not”.
In addition, the document says that the prosecutor’s office is misinterpreting the term “investor” when referring to Bitfinex and Tether clients, who are not investors and cannot require the company to disclose information. “Tether continues to trade pegged to the dollar to this day despite the litigation,” adds iFinex.
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